Application Research on the Activity-Based Costing of Value Chain Accounting

As the development of traditional cost theory, Activity-Based costing (ABC), the integration of cost management and enterprise value-chain, give us a new view to re-consider how to reduce the cost. Comparing with traditional cost management methods, the Value Chain Accounting (VCA)-based ABC extends the scope of cost control and optimizes the value chain through budgeting, decision-making, controlling and evaluating. The application of cost management in Chinese develops slowly, the management should change their concepts, gradually optimize enterprise value chain with value chain-based costing method and implement effective cost management finally.