The Application of Activity-Based Costing Method in Hairdressing Service Industry

Li DONG, Qilin MIAO, Lingyu KUANG, Ruoshan YAN

Abstract


Compared with the traditional costing method, the activity-based costing method makes the product cost close to the period cost and improves the authenticity and usefulness of cost information by reforming the distribution of manufacturing costs. This paper applies activity-based costing method to hairdressing service industry, which divides the five operations of washing, cutting, blowing, perming and dyeing, and carries out cost calculation and cost management for various hairdressing products, highlighting the basic principles of activity-based costing method. The study found that the application of activity-based costing method in hairdressing service industry could adjust the pricing according to the actual situation, and had the advantage of increasing the value of the product and reducing unnecessary costs.


Keywords


Activity-based costing method; Hairdressing service industry; Overhead; Resource driver; Activity driver

Full Text:

PDF

References


Askarany, D., Bacdifar, H., & Askary, S.. (2010). Supply chain management, activity-based costing and organizational factors. International Journal of Production Economics, (2), 238-248.

Cooper, R., & Kaplan, R. S. (1988). Measure costs right: Make the right decisions. Harvard Business Review, Septemper.

Da, J. D. (2015). Application research of activity-based costing method in company A. Anhui University of Finance and Economics.

Gopalakrishnan, B., Kokatnur, A., & Gupta, D. P. (2007). Design and development of a target costing system for turning operation. Journal of Manufacturing Technology Management, (2), 217-238.

Pang, M. H. (2016). Application of activity-based costing method in aviation ground services. Finance & Accounting, (22), 28-30.

Seuring, S., & Goldbach, M. (Eds.) (2002). Cost management in supply chains (pp.115-130). New York: Physica-Verl.

Sun, M. Z., Wen, G. W., & Yang, W. G. (2015). Management accounting. Beijing: China Renmin University Press.

Wu, Z. J. (2013). Summary and prospect of applied research on activity-based costing method in China. Friends of Accounting, (30), 84-86.

Xu, C. H. (2011). Application analysis of activity-based costing method in hotel service industry. China Business Trade, (30), 103-104.

Zhang, R., Rao, B., & Wu, W. (2006). Application research of activity-based costing method in cost accounting of cigarette manufacturing. Accounting Research, (07), 59-65, & 94.

Zhao, F. R. (2015). Application of activity-based costing method in hospital cost management. Communication of Finance and Accounting, (22), 75-77.




DOI: http://dx.doi.org/10.3968/11276

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 Canadian Social Science

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Online Submissionhttp://cscanada.org/index.php/css/submission/wizard

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use four mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; office@cscanada.net; ccc@cscanada.net; ccc@cscanada.org

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:caooc@hotmail.com; office@cscanada.net

Copyright © Canadian Academy of Oriental and Occidental Culture