Research on Management Innovation for the Hospitals' Administrative Cost Based on Activity-Based Costing

Objective:To seek the best management model for effective control of the hospitals' administrative cost.Methods:According to the problems in hospital administrative cost based on traditional cost method,activity-based costing method is used to establish cost drivers.According to cost accounting system of cost accounting model development,it creates cost accounting model and completes collation and scientific allocation of the administrative cost.Therefore it provides accurate cost information and control path for the hospitals to establish internal control measures and analyze the control effect of administrative cost by comparing with rank sum ratio(RSR) method.Results:Using activity-based costing to control hospitals' administrative cost is more remarkable than traditional cost method.Conclusion:The activity-based costing is one of the most reasonable and effective ways for the hospitals' cost accounting and control.