Implementation of Activity-based Costing in Logistics

Abstract

Logistics costing methods need continuous improvement. In this respect one of the potential development paths is activity-based costing. It is an effective tool for enhancing the accuracy of costing systems. To facilitate the adoption of activity-based costing in logistics a theoretical calculation model had been elaborated before. This paper intends to examine how this conceptual model and the new costing approach can be implemented in logistics practice. A general implementation model has been set up and adapted to the specific attributes demanded by logistics principles. Examples for concrete realisations and some empirical experiences have also been provided. The main conclusion of the study is that activity-based costing implementations in the logistics field have to be adjusted to the information needs that are influenced by several factors. The most important of these factors is the maturity of logistics competences and the complexity of cost structure.