Theoretical Basis of Activity-Based Cost Accounting System in Manufacturing Enterprises

The competitive environment is increasingly fierce, accounting information needs to be provided promptly and accurately to support managers in making decisions. Cost is always the top concern for administrators; Accurate and timely information about costs is a necessary basis for administrators to control costs and make effective business decisions in today's highly competitive and changing production and business environment. To improve competitiveness, timely decision making and good cost management are some of the advantages that help them survive and develop. Finding factors and providing solutions to help apply activity-based cost accounting systems to manufacturing enterprises more effectively is necessary. This article explores the theoretical basis of the activity-based cost accounting system in manufacturing enterprises.