The difference between traditional cost system and activity-based cost system

Activity-based costing and traditional costing are both different and related. 1. The difference is mainly reflected in.

(1) The cost accounting objects are different. The traditional product cost accounting object is the product, and the activity-based cost accounting object is the activity. (2) The cost calculation procedures are different.

Compared with the traditional cost system, the activity-based cost system requires first to confirm what activities the expense unit is engaged in and calculate the cost of each activity. Then, according to the product's demand for activities, the cost is tracked to the product. Activity-based cost allocation is based on activity quantification, and activity is the cost driver.

(3) The cost accounting scope is different. Under the traditional cost accounting system, the accounting scope of cost is product cost; Under the activity-based costing system, the scope of cost accounting is broadened and a three-dimensional cost model is established: the first dimension is product cost; The second dimension is activity-based cost; The third dimension is the driving cost. The three-dimensional cost information of activity-based costing output not only eliminates the defect of cost information distortion in traditional cost accounting system, but also enables enterprise management to change the management process.

(4) Different cost allocation standards. Under the traditional cost accounting system, costs are allocated to products according to quantity drivers, and the allocation standard of indirect expenses or indirect costs is working hours or machine hours. Under the activity-based costing system, activity-based costing is to allocate activity-based costs to products according to cost drivers. First of all, we must confirm what the expense unit is engaged in and calculate the cost of each operation. Then, based on the product's demand for this kind of work, the cost is traced back to the product through the process of transforming raw materials, fuel and human resources into finished products, so the allocation basis of activity-based cost is the quantification of activity, that is, the cost driver.

2. The connection between activity-based costing and traditional costing.

(1) Activity-based costing is a combination of responsibility-based costing and traditional cost accounting. Responsibility cost is defined by internal units, which is relatively static, while traditional cost accounting belongs to process flow and is dynamic. The content and nature of the two are different, so it is difficult to combine them. China's accounting theorists have discussed them for many years, but they all failed. Under the activity-based costing system, the essence of activity-based costing is a kind of responsibility cost. More strictly speaking, it is a dynamic responsibility cost, because it is closely combined with technological process and production organization form.

(2) The ultimate goal of both is to calculate the final output cost. Under the traditional cost accounting system, the purpose of cost calculation

The purpose is to finally calculate the production cost of products through the distribution and redistribution of various materials and expenses; Under the activity-based costing method, the indirect expenses or indirect costs are allocated among related activities, and a cost library is established, and then the activity cost is included in the product cost according to the number of activities consumed by each product.