The Research Of The Application Of Activity-based Costing In Cost Management Of Logistic Project

Many years ago, people predicted that "21centery will belong to China", and which has come true. With the fast and stead development in recent years, China are playing a more and more important role both in political affairs and economics. Within all the industry, the modern logistic industry has been developing constantly prosperous in China. In one hand, the domestic policies support is the main factor for the development of logistic company, in the other hand, the factor inside which help improve the industry environment mostly by itself. Comparing with the developing stage of overseas logistic company, the logistic companies in our country still fall behind in logistic service and company operation and management. At present, people are still use the old method to calculate and don't pay much attention to cost management in logistic company and cannot accurate calculate the cost of logistic service product. Therefore, how could we find out the proper way of cost management in this field is a must-solved problem. After The activity-based costing was successfully tried in Manufacture Company and it also badly needed in service industry, especially in logistic service industry, a lot of researchers are more and more interested in implementing this method to logistic industry.Rising sharply together with the on-line business which becomes a very common habit in recent years, logistic companies face more and more opportunities and challenges than ever before. However, the profit is growing down for many reasons.Therefore, people are thinking of some advanced cost management methods for logistic industry, and the implementation of Activity-based costing became a hot subject which should be discuss and improved. Based on the case this essay mentioned, the logistic project is still using the old way of calculating the logistic cost, which cannot reflect the real cost of products and take effect to decision making for business. Focusing on solving problems in logistic industry in this essay, Activity-based costing will be applied to logistic service products and some part of cost control and management work in this field.The cost control of logistic project includes every process of product and each part of controlling work, and it is related to the development of the whole enterprise. The accuracy of the logistics cost is the basis to solve the problem of business decision, this paper not only cover the homework cost method and traditional cost calculation method of case, the two kinds of accessories product cost calculation and comparison of A and B, and in the process of cost management in detail how to do in advance, in and afterwards control, through the case analysis methods such as comparative analysis of the questionnaire survey to analyze the problems existing in the project X and design solution. I hope it would have some good influence in the company's development in the future by writing this essay.