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Study on Manufacturing Logistic Cost Calculation and Control

Author: WangHui
Tutor: HeZuo
School: Tianjin University
Course: Business Administration
Keywords: logistic cost Activity-Based Costing cost control logistic cost calculating
CLC: F406.72
Type: Master's thesis
Year: 2009
Downloads: 553
Quote: 0
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Abstract


The focus of traditional cost control is normally the production or operation cost. The logistic cost is often ignored. With more fierce market competition, the importance of logistics is recognized. Logistics is regarded as the third source of profit. Lowering the logistic cost becomes the focus point for the management level in a company. This thesis begins with how logistic expense is nowadays for most of companies, and then introduces the concept and characteristics of logistic cost and problems and difficulties in managing the logistic costs, casts new light onto the difficulties in logistic cost calculation and control, comes up with fresh ideas about the root causes. And then based on the knowledge of logistic cost, it gives a brief introduction of the research in the logistic cost management community. Afterwards this thesis specifies the classification, calculating methods and difficulties in evaluating the logistic costs, which consequently lead to the author’s creative idea towards setting up and enhancing logistic cost evaluating system. After that, according to the above mentioned classification and calculation of logistic cost, this thesis gives a detailed presentation of the concept, evolution, basic principle and procedures of ABC(Activity Based Costing), and gives a detailed demonstration of ABC, controlling strategies of logistic cost to guide the practical logistic cost management. And it illustrates by an example the application of ABC in logistic cost calculating and control. This thesis reaches a conclusion that we need to change the current logistic cost calculating system, calculate the logistic cost separately and calculate and control the logistic cost by the method of ABC. In the end this thesis introduces the partial and integrated controlling strategies, stock and transportation cost practical application and creative outlook towards focus fields and trend of logistic cost research based on the understanding of logistic cost control and calculation.

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CLC: > Economic > Industrial economy > Industrial economic theory > Organization and management of industrial enterprises > Financial management and accounting > Financial management, cost management
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