Objective To develop Department-level Cost Accounting System based on No.1 Military Medical Project.Methods Making the full use of programs and data in No.1 Military Medical Project,the software creates department income from the lists of outpatient fee and inpatient fee,and then in combination with the consumable disbursement,equipment depreciation,realty depreciation and maintaining cost etc,the software collects and sums up all income and cost to create cost accounting report forms.Results Department-level Cost Accounting System could automatically create the cost-accounting report forms for hospital management.Conclusion The application of Department-level Cost Accounting System strengthens the management of cost accounting in military hospitals and achieves good effect.