The Application of ABC to Logistics Firms

The logistics industry has a strategic and fundamental position in the national economy, and the contribution rate to the gross national product is increasing year by year. Logistics enterprises are constantly expanding their scale of operation, business scope, but because of strong market competition, the profitability of logistics enterprises is low, and many logistics enterprises are facing survival dilemma. More and more logistics managers realize that using of activity-based costing(ABC) to control cost of logistics enterprises, they can reduce logistics costs and improve profitability. Although the full use of ABC in China's logistics business conditions are not yet mature, we can expect in the logistics cost accounting using the activity-based costing is the trend.