Application of activity-based costing on cost accounting of acupuncture project

Nowadays, hospital managers pay more and more attention to the cost accounting in order to reduce the hospital operating cost and improve efficiency. The appearance of activity-based costing (ABC), whose idea is “cost objects consume activities, which in turn consume resources”, gives a new idea to cost accounting of medical treatment project. In this paper, ABC is applied to the acupuncture service project to calculate the cost of acupuncture project and the ratio of each activity cost. The results proved that ABC was valid for the cost accounting of medical treatment project.