Design of Activity-based Costing Model Based on the Reciprocal Cost Sharing

One of the difficulties of activity-based costing is the support departments (faces products/service indirectly) reciprocal cost sharing, and it is crucial to calculate product/service cost. Based on the reciprocal cost sharing of support departments, the thesis established the activity-based costing model. The model is defined as total activity-based costing model in the paper. The accuracy of product cost is improved by using the model, and the application fields of activity-based costing are expanded.