Application Research Of Activity-based Costing (ABC) To Third Party Logistics (TPL)

With the entry of WTO and the establishment of market economy, the environment both inside and outside of the survival and development has changed a lot. The management of enterprises has changed from extensive to intensive and cost management is the core in this change. Cost information is the key factor and precondition in the management and decision of enterprises. TPL being the new and prospective trade, the establishment of the cost accounting methods and the necessary accounting standards become more important.The paper is to solve the faults in the systems of cost accounting and accounting in view of the complication of the logistics cost. Based on the general estimate and the analysis of the advantages of ABC, ABC is presented to be applied to cost accounting and ABM is introduced to strengthen the management of TPL. At the same time, the idea of setting accounting standards in logistics is put forward to reflect the cost accounting information and standardize it in logistics. This will not only solve the problems of minor cost management but also the macro one in TPL.The paper is divided into four chapters and the following is the main idea:Chapter one: With the analysis of the general development of logistics and the problems of its cost management, the requirement of ABC in TPL is presented.Chapter two: Based on the concept of logistics cost in cost theory, the logistics cost is classified in detail. Then the general adaptation of ABC and the advantages of its cost management and cost accounting are also introduced here.Chapter three: It is necessary and accessible to apply ABC to TPL with the analysis of all factors in enterprises. At the same time, the accounting models of ABC in TPL is presented based on the characteristics of accounting modelsof ABC. Moreover, the accounting steps and its related measures and the accounting systems are also presented with examples.Chapter four: In order to apply ABC to TPL, the arrangement of the management organization and business, ERP and logistics accounting standards should be done.Conclusion:1. It's necessary and accessible to apply the cost accounting of ABC to TPL.2. To apply cost accounting of ABC and the management to TPL, the systems of the organization, business and the IT should be established .3. The accounting system should be established to apply cost accounting and cost management of ABC to TPL. This is the key to solve the faults and loss in cost accounting information in logistics.