The Application of the Activity Based Costing in Logistics Costs
DOI:
https://doi.org/10.33516/maj.v45i8.631-635pAbstract
Activity based costing is a methodology that measures the cost and performance of cost objects, activities and resources. Cost objects consume activities and activities consume resources. The problems that conventional costing methodologies raised were the main reason for developing a new theoretical approach to this subject. Logistics is the management of the flow of goods, information and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers Logistics consists of activities that facilitate the movement of goods from supply to demand. As many such activities require the use of ports, port authorities have taken a particular interest in the various port activities involved in logistics. Performance indicators of logistics activities measure the performance of a logistics system and evaluate its efficiency level. Activity-based costing (ABC) can assist logistics managers by revealing the links between performing particular activities and the demands those activities make on an organization's resources. Logistics activities are oriented to create value for consumers, suppliers and other companies involved in the physical management of goods. To reduce logistics costs and provide the level of customer service demanded,it is important to know the resources used in every activity through an efficient logistics cost analysis system.Downloads
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Published
2010-08-01
How to Cite
Ramesh, B. (2010). The Application of the Activity Based Costing in Logistics Costs. The Management Accountant Journal, 45(8), 631–635. https://doi.org/10.33516/maj.v45i8.631-635p
Issue
Section
CMAs in Transport and Logistics Sector