Study On The A Enterprise Logistics Cost Management Based On Activity-based Costing

Logistics cost management is always a big problem that troubles enterprises. With thedevelopment of the market economy, enterprises are facing increasing competition, and it is mainlymanifested in the product cost, quality, service and many other aspects. Among them, thecompetition of cost is the key to improve the competitiveness of enterprises. In addition, logisticscost accounts for a high proportion in the enterprise product cost, so how to manage the logisticscost becomes the most urgent problem that enterprises have to resolve. In order to make a goodmanagement of logistics costs, the reason of why it occurred has to be clear. However, according tothe traditional mode of cost management, the benchmark for the allocation of the indirectmanufacturing costs is based on a single working hours or machine hours, so it is difficult to reflectthe real reason of logistics cost occurrence, and also brought difficulty to the logistics costmanagement. Therefore, looking for the new logistics cost management methods becomes aneffective way to solve the problem of traditional logistics cost management mode. Activity-BasedCosting is based on activity, it can fully reflect the real consumption causes between the productand the logistics cost, provide more accurate logistics cost information for the enterprise productionand management, which is a good remedy of the defects of the traditional logistics costmanagement.Taking a LED display production enterprises as an example and according to the study ofmanufacturing status, this thesis has introduced the application of activity-based costing in theenterprises, providing new ideas for logistics cost management in LED display productionenterprises. First of all, an introduction of relevant theory on activity-based costing was introducedin this paper, which including its concept, its principle and calculation process and so on, laying atheoretical foundation for the application of the method. Secondly, on the basis of the status analysisof business process and logistics cost management of A enterprise, it is very necessary and feasibleto apply activity-based costing to its cost management of A enterprise. Finally, by applyingactivity-based costing to A enterprise and making management based on such a method, it is foundthat with activity-based costing, it is easier to manage logistics cost. This leads to the conclusionthat it is more suitable to manage the logistics cost by activity-based costing.