Use of the Activity Based Costing (ABC) for differentiation of account and control of logistic expenses

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MAGAZINE  №5 (94) October 2019


CATEGORY  Analysis in logistics and SCM Controlling Modern concepts and technologies in logistics and SCM



 The article is devoted to Activity Based Costing as one of the effective methods of logistic costs optimization in supply chain and business management. Modern ideas of management are based on the fact that business needs to be clearly defined, measured, analyzed and improved. The method of the Activity Based Costing (ABC) is one of possible methods.
Being one of the types of economic analysis, ABC, the essence of which lies in the object system research (products, process, structure), is aimed at optimizing the ratio between consumer properties and costs of its creation and usage.
ABC method proceeds from the fact that there are extra costs in any production, in any production, technical and economic system, and, subsequently, there is room for improvement. The task of the analysis is to find reserves to reduce production and operation of products costs on the basis of specific methods and research procedures. ABC method allows, when creating new products, to prevent extra costs and also to provide the level of expenses that does not exceed the established one, when using the created object, reduce or exclude economically unjustified costs.

 Electronic version

 Keywords:  logistic costs Logistics Level Costs management accounting cost management cost cutting cost minimization activity based costing ABC business process Business Process Reengineering

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