Study On Application Of Activity-Based Costing In Enterprise's Logistics System

Activity-Based Costing Method is an integrated management approachthat is based on the Activity-Based Costing, Activity-Based Accounting andActivity-Based Management. In 1980s, Activity-Based Costing was broughtforward. Till now ABC is accepted by most developed country not only intheory but also in practice, such as America. But the theory is only beingintroduced and tested in some enterprises in China. ABC overcomes theunfair for indirect expense of traditional costing measure, which induces thedistortion of accounting information. So it can bring the true impersonalfinancial information for decision-making in a company.Reducing logistics cost is considered to be the third profit source ofenterprises. But at present, under the traditional cost accounting method,the logistics cost of enterprises of our country is like an iceberg, a greatdeal of expenses correlating with logistics inside enterprises are all sneakedinto other administrative expenses, thus making it very difficult forenterprise's administrator to master enterprise's real logistics cost, let alonereduce it. To logistics system, Activity-Based Costing Method is importantand practical, and is considered to be the most promising method to confirmand control logistics expenses. But at present, Activity-Based CostingMethod has not almost been used by enterprises in our country. Afterintroduction of Activity-Based Costing, relevant concept, checkingprinciple and step, relevant concept of logistics cost, this paper hasdiscussed emphatically how to analyze and calculate the logistics cost ofenterprises using Activity-Based Costing Method, has illustrated theenormous advantage of Activity-Based Costing Method against traditionalmethod in calculating enterprise's logistics cost with a simple sample. Bythat, the paper makes every effort to make people have a comparativelyintact understanding to the logistics cost of enterprises, hoping enterprise'sadministrator to pay more attention on Activity-Based Costing Method tochange its performance in logistics system of our country, and to realize thecost competition advantages of enterprises.