The Application Of The Activity Based Costing In The Enterprise's Logistics Cost Management

With the development of the global economic environment, the concern about the cost of manufacturing industry has changed from the production field to the field of circulation, and thus has produced logistics. The aim of logistics is to reduce the cost and improve the service quality. So, the cost management has become the core of logistics management. It would reduce the total cost of the goods by researching the method of reducing the logistics cost which can become the new-type profit of modern economic growth and play the role of an initiator in the national economic growth.Since the modern logistics grew, the objection and drawback of the traditional cost management have been shown especially day by day which require seeking a new method of logistics cost management to change the current situation urgently. By using the Activity Based Costing Management(ABC), manufacturing can lower the logistic cost effectively ,improve the capacity of earning profit and make focal point on the management activity so that the calculation of logistics cost can be more accurate so that it can offer more effective basis and supporting to make policy;we should focus on the completion of each activity and the resource consuming which would greatly enhance the cost consciousness, understand when and where that cost would produce and can look for appreciation activities and activities that do not appreciate. The method of Activity Based Costing can help improving logistics design and effectively controlling the logistics cost, thus it can improve the competitive ability of the company which can help the logistics cost management of the manufacturing business of our country in line with the international standards.The method of Activity Based Costing (ABC) has been applied to more and more enterprises both here and abroad ,and has got better results. In 1990s, the application of the Activity Based Costing is relatively low in proportion in foreign countries. But the rate grows so fast in recent years that close to 2/3 enterprises have put it in use. And the degree of satisfaction to ABC is relatively high. Because of the popularization of ABC in enterprises, the academy of foreign countries have appeared new upsurge in the study on ABC. In the year of 2000, Robert · Bell, Felix·Schmidand Roger ?Mears , the America scholars .designed the system of ABC, and set up the cost control model;In 2002, the professors of Cooper and Kaplan made a united effort again and gave a new exposition and design to the system of ABC. The introduction of ABC in our country began in 1988 . But there is hardly any enterprise to use it. At present, the Activity Based Costing has already formed a set of intact content frames and concept systems which have offered the theoretical direction for its application to enterprises, and it would no doubt cause the rise of Activity Based Cost Management.The hard-core of the paper is to apply the method of Activity Based Costing in the logistics cost management of the manufacturing business. So the text has summed up the concept system of the Activity Based Costing. It has analyzed the feasibility of applying the Activity Based Costing to logistics cost management of manufacturing. Then, it offers a common former of logistics activity accounting. Finally, the text expatiated the application of the Activity Based Costing in the logistics cost accounting, supplier and customer choosing, logistics activity course analysis and the activity based performance appraisal . Finally, it illustrated the theories with examples.