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2016 is better than year 2015 which mean that it is an increases cost from year 2015
to year 2016. It is due to they are improving their working efficiency during their
working process, like company provides a proper training to all the employees every 3
months so that every employees can update or upgrade self and working knowledge,
therefore, employees will have high efficiency of the working and the company
revenue will better than the past.
As a conclusion, this company used ABC to capture direct costs and variable
overheads which were lacking in the stated-owned enterprise’s (SOE) traditional
costing system. The core victory of this company is ABC attempt that it changes SOE
and encouraged to regulation in their working practice process. Before introducing
ABC, this company was using traditional Chinese state enterprise accounting system
that delayed to do pricing for their products. Later on, this company started to produce
based on ABC report. During 2010, the company achieved 50% increased of annual
sales whereas in 2009, the company net profit margin was 13%. After applying ABC
techniques, the company management accountant and employees received a positive
experience although the organizations management accountants also describe that
ABC techniques provided a special opportunities of learning new management
accounting methods. Another than that, this ABC are changes the Chinese accountant
accounting perception and also it is obvious that more experienced accountant of the
company mention that they was just working with monthly financial reporting and
bookkeeping system but after applying this ABC, it allows them to use the
information for internal purpose. The top management become more self-governed of
the precision of their essential direct cost and accepted ABC as an analytical tool for
business function. It is clearly suggest that ABC system can work more in a stable
environment but also may not work in unstable environment. In additional, core
organizational events including allegation and ERP application could be reflective
impacts of management commitment to additional progress the ABC system and it
might be poorly affect the use of ABC information.