September 2010
Intermediate to advanced
288 pages
10h 16m
English
Content preview from Logistics and Supply Chain Management, 4th Edition
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LOGISTIC S & SUPPLY CHAIN MANAGEMENT
80
Cost drivers and activity-based costing
As we indicated earlier in this chapter there is a growing dissatisfaction with
conventional cost accounting, particularly as it relates to logistics management.
Essentially these problems can be summarised as follows:
There is a general ignorance of the true costs of servicing different customer
types/channels/market segments.
Costs are captured at too high a level of aggregation.
Full cost allocation still reigns supreme.
Conventional accounting systems are functional in their orientation rather
than output oriented.
Companies understand product costs but not customer costs.
The common theme that links these points is that we seem to suffe ...
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