ABSTRACT
With the continuous development and improvement of the market economy and the speeding-up of the process of the global economic integration, as well as the arrival of the era of knowledge economy, enterprises are facing with unprecedented challenges. Moreover, because of the serious influence of the international financial crisis, if the enterprises do not fully reduce their costs (TCD), they can not make any profit. Only using the method of cost accounting, they can fully control their cost.
My paper firstly introduces the basic theory of the cost accounting and the ways of the cost accounting, including the methods of the traditional cost accounting and Activity-Based costing. Then, by the study and data analysis of the cost accounting of Hang Zhou Cigarette Factory, I analyze the current situation of the actual cost accounting and find their merits and defects. Finally, I cited out the improving measures of the cost accounting methods and we can also call it the accounting methods of the integration of Fractional step method and Activity-Based costing .
KEYWORDS：Production costs ， Cost accounting ，Traditional means of cost accounting ，Activity-Based Costing (ABC)
