The Case Study On Activity-based Costing Control In Y Logistics Company

The logistics industry has developed rapidly, and played an increasingly important role in national economy in recent decades, since the concept of logistics was introduced to China twenty years ago. However, the whole industry is faced with the problem of high logistics cost recently. High costs not only threaten to the companies’ competitive force, but also hinder the economic transformation and upgrading in China. Therefore, it’s imperative for logistics industry to strengthen cost control and reduce cost. Till now, the industry doesn’t have its own accounting system. With traditional cost calculation method, the cost information is not accurate or comparable, which influences the effect of cost control. Activity-based Costing is a new method of cost management, which can remedy the disadvantage of the traditional method, and offer an alternative way to control cost.In view of this, this thesis studies cost controlling with the theory of Activity-based Costing(ABC), choosing Y Logistics Company as object, Applying ABC to the whole process of cost control. This thesis tries to build a cost control system based on ABC, which is suitable for logistics industry.Firstly, this thesis reviews the related literatures and theories, to lay a theoretical foundation for the case study. Secondly, according to the cost control present situation of Y Logistics Company, this article analyzes the existing problems and the reasons behind, then puts forward to introduce ABC into cost controlling, and analyzes the significance of this propose. Thirdly, This article builds a cost controlling system based on ABC, and divides the framework into three modules---feedforward control, in-process control and feedback control, then take the company’s key business as example to demonstrate how to put the cost control system in operation. Finally, this article forecasts the expected effect and probable problems in practice, and also puts forward some corresponding security measures.This article hopes to build a cost control system based on ABC in Y Logistics Company, to help it strengthen cost controlling, reduce logistics cost,and through this case study, to provide a reference for other logistics companies.