Enterprises' Logistics Costing And Control Based On ABC

With the increasingly intensive competition among enterprises and the continuous shrinking of raw material price-cutting margin, low logistics cost has become the main effective factor of obtaining competitive advantage. As the Activity-Based Costing (for short ABC) can distinguish and wipe off the ineffectual cost in logistics process and rebuild the hole logistics management, ABC is becoming one of the important tools in modern times for logistics costing and control. This paper based on the basic theory of ABC, analyses the subjects of based on ABC enterprises' logistics costing and control, as well as the measures to ensure them going well.Firstly, this paper expounds the basic theory of logistics costing and control based on ABC. The paper introduces the basic concepts, which includes activity, cost driver, activity center, activity cost pool and the basic thought of ABC is "products and services consume activities, activities consumes resource, producing and selling lead the activities happen, activities lead the fee happen". Then the paper analyses logistics costing and control, which includes the concept and the classes of logistics cost, its characteristics with finance cost, differences between ABC and traditional costing methods to caculate logistics, the concept of logistics control and the system of logistics control. Afterwards it discusses the foundation and sense of ABC combined with logistics costing and control.Based on these, the paper discusses the enterprises' logistics costing based on ABC. The paper expounds the blueprint of calculating the logistics cost based on ABC, which is the cost distribution from resource to activity, then to the cost object. Particularly, it analyses how to calculate the logistics cost based on ABC. For explaining the specific blueprint and methods of logistics costing based on ABC, the paper gives a case. Then the paper discuss the control of logistics cost based on ABC. It puts forward the basic principles of logistics cost control based on ABC, expounds the main methods of logistics cost control based on ABC. And for explaining how to control logistics cost from the information of accounting results, this paper gives a case extending from the costing case.Lastly, the paper puts forward the advice how to ensure logistics costing and control based on ABC, including improving the logistics management system, building logistics cost examine system, managing the logistics cost in strategic vision, optimizing the logistics system and finding the cut-in dot to reduce logistics cost, attaching weight to activity details and elevating the ratio of logistics cost control.