Logistics Costs Case Study: An ABC Approach

• Type: Article in International Scientific Journal
• Date: 2000

Authors

Isabel Themido (Author) Other; Amilcar Arantes (Author) Other; Carla Fernandes (Author) Other; Alcibíades Paulo Soares Guedes (Author) FEUP

Journal

Title: Journal of the Operational Research Society

Vol. 51 No. 10

Pages: 1148-1157

ISSN: 0160-5682

Publisher: Taylor & Francis

Scientific classification

FOS: Engineering and technology > Other engineering and technologies

Other information

DOI: 10.1057/palgrave.jors.2601031

Abstract (EN): Activity based costing (ABC) represents a radical departure from the traditional cost accounting systems. The BBC methodology, rather than allocating costs to individual units, identifies the activities that consume resources, matching costs to the level of such activities. The key aspect of this methodology is the development of the models that represent a logical and quantifiable relationship between the utilisation of resources, the performance of activities, and the products or services that they provide. With these models one can simultaneously mirror the flow of orders and products along the logistic chain, capturing the costs at a level of desegregation that enables the analysis of profit by type of client, market segment and distribution channel. This application of ABC costing to a logistic operator illustrates the main difficulties and benefits of this approach.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 10