A Study Of Logistics Cost Control Of Zhengzhong Pharmaceutical Machinery Company Based On Activity-based Costing

With the continuous development of economic globalization and the increasinglyfierce market competition,manufacturing enterprises pay more attention on anefficient logistics system," the third profit source ",and less attention on reducementof the consumption of raw materials,"the first source of profit", and improvementof labor productivity,“the second source of profit”,to establish a key competitiveadvantage.Our enterprises, especially manufacturing enterprises have a competitiveedge in the international arena because of large production volume,low labor costs.But our business emphasis on production and contempt logistics, resulting in the highcost of logistics,it has also become our deadly short board when competing withmultinational companies.The lack of logistics cost management and control research has direct impact onthe enterprise logistics management,scientific logistics systems reengineering andcorrect decision-making,thereby constraining improvement of logistics managementand strengthenment of the competitiveness of enterprises.Based on this background,this paper characteristics the composition of the logistics cost based on activity-basedcosting to identify logistics cost control points.This paper analyzes the currentsituation of logistics cost management problems of Zhengzhong pharmaceuticalcompany and explains the necessity and feasibility of the use of activity-based costingin the course of the company’s logistics cost accounting.By this way,differentconsuming job has an appropriate allocation of manufacturing overhead cost to ensurethe accuracy.Meanwhile, the company’s main products ADJ-150micro-leak detectionmachine control and JAZ-800automatic ampoule light inspection machine, forexample, by comparing the volume (hours consumed) as a basis for allocation of thecost of traditional manufacturing results in job costing accounting results based on theamount of activity-based costing to allocate manufacturing costs, using actual data toillustrate the operating costs wears the traditional cost accounting methods reasonableand scientific.Finally, based on the results of the analysis and evaluation of the case presentedseveral strategies to strengthen the logistics cost control for Zhengzhongpharmaceutical company: to enhance the training staff awareness of cost control,establish and improve cost control system; reduce transportation costs is the key of Zhengzhong pharmaceutical company short-term logistics cost control work;the keyof logistics cost control is to strengthen the logistics cost control critical controlpoints.