Research On The Cost Control Of Express Company

In the past few years, with the rapid development of science and e-commerce, the express industry is facing increasingly vigorous growth as a kind of emerging industry, and more and more competitive express enterprises have been sprung out. At the same time, the competiton among the industry are becoming more and more fierce. Nowadays, express companies must attach importance to their own cost management if they are eager to remain invincible in the fierce competition. Most of the express companies are still using traditional method of cost accounting, however, for the express companies have some features such as high cost and difficulty in pricing, the traditional cost accounting has been conducive to the express companies cost control. It will bring out some problems, for example, it will cause the unsharpness of cost and also mislead the decision of management.According to the above, how to manage the cost accounting and cost control effectively is the significant difficulty which should be solved appropriately and timely by express companies. Activity-based costing(ABC costing) is a fine accounting methodology that can make up for the deficiency of traditional accounting method. Activity-based costing(ABC costing) can not only count the cost of enterprise, but also can upgrade the cost control to the activity level. It will make convenience to the management’s effective decision.This article apply the method of case analysis, it take a private enterprise called TTK express which established earlier in China, then based on the theory of management accounting and logistics cost control.Firstly, it analyse the cost features of the express industry, the definition and procedure of ABC costing and compare ABC costing to the traditional costing. Secondly, take TTK express as a example, the article introduce the current cost accounting and raise some existing questions of cost management of TTK, and also analyse these questions and then come to a conclusion that TTK has the necessity to apply ABC costing to their system. We take an analogical application to TTK express by apply ABC costing to its cost accounting procedure, finish the design and operating of ABC costing application and also we get some testing data information from the procedure. Based on the application, we compare the traditional costing and ABC costing methodology, and draw a conclusion that ABC costing is the best method to modern express companies and prove the advantages of ABC costing. Finally, the article presents personal opinions and suggestions of the application of ABC costing in TTK express. Through the series of analysis and discussion of costing management, we hope that this will provide some practical reference values to TTK’s costing management and also can do good to other express companies if they can finely think it is good reference and guidance.