Research On Cost Control Of S Logistics Company Based On Activity Based Costing

With the development of urbanisation and the dual drive of the Internet and the Internet of Things at home and abroad,China’s logistics industry is developing rapidly and has huge market potential.Through the integration of logistics resources,the logistics industry has shown a good development trend.The control of logistics costs in such aspects as cargo transportation,storage management and distribution loading and unloading can effectively promote the logistics industry to reduce costs and improve quality.However,China’s logistics enterprises have failed to effectively grasp the main contradiction of logistics cost control so as to accurately control costs,and the level of cost control is insufficient,which to a certain extent restricts the development of China’s logistics economy.Therefore,it is important to optimise the whole process of logistics cost control,find suitable cost control method and apply it to the whole operation activities of logistics enterprises.This paper introduces the Activity Based Costing and conducts a cost control study on S Logistics Company.Firstly,this paper explains the research background of cost control in logistics companies,explains the importance of using the Activity Based Costing to control logistics costs,and analyses and reviews the relevant research on cost control,logistics cost control and the use of the Activity Based Costing for logistics cost control at home and abroad.Then,the theories and theoretical foundations of cost control and the Activity Based Costing in logistics companies are introduced.Finally,the field research investigated the overall operation situation,the characteristics of logistics activities and the current situation of cost control of S Logistics,and concluded that the company had the problems of inaccurate cost budgeting,incomplete cost control dimensions and inappropriate cost variance tracing,and carried out feasibility and necessity analysis in conjunction with the cost control problems of the company,and designed a cost control scheme based on the Activity Based Costing.The specific implementation process is divided into five stages: basic work,feed-forward control,process control,feedback control and effect analysis.Using the cost information of the logistics business of Company S,the specific operation steps under the five stages are analysed and elaborated,and countermeasures to solve the cost control problems of Company S Logistics are given in a targeted manner.The final conclusion of the study is that activity cost control uses a variety of allocation criteria based on the characteristics of various types of logistics operations,and takes costing down to the activity level,calculating product costs through the recognition and measurement of activities and activity costs,as well as combining motive force analysis and activity analysis to track and dynamically reflect an enterprise’s activities,guiding it to perform necessary activities and eliminate and streamline low-value activities.Cost control based on the Activity Based Costing has enabled S Logistics to have more accurate cost data,more comprehensive control dimensions and clearer attribution of cost responsibility.This study provides cost control ideas for companies with high overhead costs and a wide range of logistics operations similar to S Logistics.