Study On Application Of Activity-Based Costing To Logistics Enterprises

In recent years, with the economical globalization and the informationization process accelerating, logistics industry in China has expanded rapidly, a large number of modern logistic enterprises have emerged out. How to strengthen cost management, reduce logistics cost effectively, increase corporate profit is becoming a core content of logistics management for logistics enterprises, and also is the important question which the modern enterprises have to face. Since problems of high indirect costs and customized logistics services as well as pricing difficult which exit in the logistic industries, traditional cost method adopt single standard of cost distribution which can't correctly reflect the effect on product service of different costs in the different pruduction, all of these haven't been able to satisfy requirements of the modern logistics enterprises to improve the high level of cost accounting and cost management.In the 1990s, a brand new enterprise management theory and method called activity-based costing were applied firstly in western advanced manufacturing enterprises. It reforms traditional costing method in many aspects,it puts the core of cost management into activity level, its aim is to eliminate as more activities of no increment value as possible ,improve activities of increment value, and provide more value information for the cost management and management decision of the modern enterprise. Aiming to the characteristics of the modern logistic enterprise,this paper does researches on the cost accounting issues of logistics enterprise and study the application of activity-based costing in the logistics enterprise from the perspective of the logistics provider.Use accurate cost information provided by activity-based costing to enhance the logisitics' cost management. This paper points out that the logistics enterprise can use the activity-based costing to dig out and calculate the true cost of logistics, and provides methods and supports to other strategic decisions of logistics.This article first introduced concept,characteristics and constituents of logistics enterprises and cost as well as concept and theory system of activity-based costing. Meanwhile it makes the comparison between activity-based costing and traditional costing method. Secondly, on the basis of analysis of current situation of logistics enterprise accounting as well as necessity and feasibility analysis of current situation of implementing activity-based costing, it builds the activity cost accounting model of logistics enterprise. Thirdly, by using of activity-based costing in Suzhou China Shipping Logistics Co.,Ltd, the article analyzes the method and steps of activity-based costing, compares the accounting results of activity-based costing and traditional cost accounting, also use activity-based costing to control logistic cost and improve activity. Finally, the article points out that the activity-based costing can provide accurate logistic cost information, strengthen cost management and then reduce logistic cost, increase enterprises profits, so the application of Activity-Based Costing in logistics enterprises is feasible and necessary.