The Application Of Activity-based Cost In Logistics Cost Management

With the development of logistics, great changes have happened in management ideas and means. For example, logistics requires us to think over from the whole process of supply chain in order to reach the best of all; Logistics needs the method of balance to deal with the "law of antinomy". Particularly, from the aspect of cost management, it becomes more important to know the actual logistics cost, to calculate logistics cost exactly, to control and reduce logistics cost considerably after the introduction of logistics. Traditional accountancy can't calculate logistics cost exactly, so it's impendency to find a new way to calculate the true logistics cost.The applying of Activity-based Cost in logistics cost management, is just hitting the spot. According to the feasibility and maturity of ABC applying to logistics management, this paper also studies applications of ABC in logistics cost management, such as logistics cost calculation, supplier selection and evaluation decision, logistics service price decision, logistics cost budget management, logistics activity-based performance evaluation.The hard-core of this paper is logistics cost calculation. So starting from the basic Activity-based Cost, this paper deduces three calculating models which can suit different logistics cost calculating: the fundamental calculating model, the practical cost calculating model, random calculating model, and the relevant allocating models. Afterwards, the paper uses one of the models to solve the VSC site decision problem for Beijing CITIC Auto Logistics Company.