Application Of Activity-based Costing Method In Logistics Company C

With the development of market economy, the economic and political communications between countries become more and more frequent.While companies can get more chances and larger development platform, the competitions between them become more and more intense. In order to enhance their core competitiveness and maintain the current market share, companies work hard to reduce costs. Under such circumstance, far-sighted companies begin to pay more attention to logistics---“profits from the third party”. Because of the corporate culture limitations, poor reserve of related talents, business scope difference, most companies cannot do logistics operations by themselves, thus the emergence of “third party logistics”.China started late on logistics industry. Under the strong support of government and other departments and commissions, it has achieved rapid development. But there are some inevitable problems, such as the proportion of logistics fees in GDP is too high. This is due to several reasons. On the one hand, China’s logistics industry lacks sense of cost management. On the other hand, the cost accounting method has not reached International Standard. We still choose operating cost method as the dominant cost accounting method. But this traditional method is unfit since indirect expenses are very high in logistics industry. Certain deviations will occur by using this method.Activity-based costing method is a newly emerging accounting method based on previous methods and has a lot of advantages. By using this method, you should divide the whole operating process into separate tasks. All the expenses incurred during the operating process are identified as individual resource. It has also changed the previous single assignment method of indirect expenses, and use agent as a referential factor. In this sense, activity-based costing method is a more suitable and can conform to the development trend of logistics industry. It can help companies manage the costs more effectively and increase their own values.This thesis adopts documentary analysis method, the integrating and qualitative analytical method, methods of quantifying two factors and practical analysis. This thesis first analyzes systematically the theoretical and practical study of America and Japan on activity-based costing method. And then introduces a series of studies on logistics cost and activity-based costing method of our country. At last, there is a thorough explanation of related theories of activity-based costing method and the components and features of logistics cost. This thesis has taken a logisticscompany C who has not chosen the activity-based costing method as an example, and has made through and systematic introduction of it. C company is facing various problems caused by different reasons. But the outdated cost accounting method is the most important reason. So it is necessary for C Company to change its cost accounting system. It is C Company’s first choice to introduce the activity-based costing method. At the same time, this thesis has designed an activity-based method model aimed at conducting specific business. By using this model, this paper had calculated C Company’s every kind of cost. At last, it has made a contrastive analysis between the outcomes and has reached a conclusion that the activity-based costing method can assure a more accurate out come and can help C Company plan its business process more reasonably, in order to achieve a better cost management.But there are trade-offs. There are still some problems with activity-based costing method. This thesis has made several suggestions from macroscopic to microcosmic aspects. I hope to this can provide references to C company and other logistics companies in the cost accounting process.