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

Li DONG, Qilin MIAO, Lingyu KUANG, Ruoshan YAN


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.


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

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