Title: Enterprise Quality Cost Research Based on Activity-based Costing
Abstract: The application of activity-based costing in the accounting of quality cost has solved the problems that exist in the traditional quality cost accounting; the enterprise of rare earth is used as the research object in the paper and the activity quality cost model is constructed, the quality costs of the enterprise are collected and allocated; meanwhile the quality activity is analyzed and the suggestions of improvement are presented so as to improve quality interest and reach the purpose of cost reduction and benefit increase for the enterprise.Along with the continuous development of human society, quality has attracted much attention as a permanent topic.Quality issue is not only related to the interest of vast consumers, but it also becomes a strategic problem for the existence and development of the enterprise; meanwhile the accounting of quality cost has become the basis for the management level to manage and decide.The single cost driver is adopted in the traditional quality cost accounting to perform cost distribution, which can't satisfy the requirements of quality cost management; however, the activity-base costing can perform accurate accounting on the quality cost and provide correct information of quality cost, meanwhile it can also conduct evaluation on various conditions of product quality cost so as to make management personnel specially perform quality cost control. Literature review Research conditions of quality costWan Shouyi and other researchers (2010) presented the approach of quality cost optimization at the aspect of quality cost management and optimized the quality cost by this so as to reduce the quality cost and obviously improve economic benefit 1.Through researching the changing characteristics of quality cost at various stages of the product's life cycle, Liu Weidong (2011) presented optimization design principles that the product introduction period shall be shortened as possible, the quality management requirements of zero defect at the period of product growth shall be promoted and the product maturity period shall be prolonged2.Through establishing simulation model of system dynamics, Shang Shanshan and You Jianxin (2011) studied the relationship between various components of quality cost at different quality level; they certified that the correctness of grey-linear regression combination model by case study through establishing the relationship model between the quality cost and quality level by means of grey-linear regression combination model3.Yin Meiqun and other researchers (2000) considered using the method that the quality cost was included into the accounting system and the accounting method was used to perform collection and distribution at the aspect of quality cost accounting and collection4.Hou Lan (2006) performed detailed comparison on the PAF method, process-based costing and activity-based costing and he presented its significance on the accounting and measuring of implicit quality costs5.Ren Yuejun (2008) performed discussion on the content of quality cost accounting and compared the similarities and differences as well as the relationship between the product cost and quality cost so as to perform classification on the quality costs6. Research conditions of activity-based costingThe American scholar Stan Bers (1971) made systematic and comprehensive discussion on the relevant concepts of "activity", "costs", "accounting" and "work input and output system" at the activity costing and input-output accounting.