Study M Company Logistics Cost Control Based On Activity-based Costing

With the development of society, the competition between the enterprise is intense with each passing day. How to survive and develop in the intense market competition is the major task that every enterprise is faced with. At present, the enterprise leadership gradually realizes the importance of logistics cost control and the control of logistics cost is directly related to the enterprise’s profit and the accurate cost accounting and control cost effectively are the key to improve the market competitiveness of enterprises.First of all, the paper analyzes the logistics cost management of this selected topic background and the meaning, introduces the current domestic and foreign study on logistics cost control situation, and puts an emphasis on the logistics cost, the logistics cost control and the theory of ABC; Secondly, in the analysis of M company logistics cost control on the basis of the current situation, it points out some existing problems in the logistics cost management and control. On the basis of this, the paper combines the target cost management and the theory of ABC and carries out the control of the logistics cost to the M company. Utilizing the characteristic of market-oriented, the target value is made which can make a beforehand control of the logistics cost. Thirdly, to the M company’s two products as an example, the application of activity-based costing in the logistics cost is accounted and compared to the traditional cost calculation method, it points out the defects. The result of the accounting of the application of ABC is more scientific. At last, according to the result of the analysis of the activity-based costing method, it puts forward some strategies about the logistics cost control.