Enterprise Quality Cost Research Based on Activity-based Costing

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.