LOGISTIC COSTING

GROUP MEMBERS
DARSHAN TARTE 177
SANDEEP TATE 178
POOJA THAKKAR 183
VATSAL THAKKAR 184
CHIRAG VADGAMA 189
BHAVYA VIRA - 190

What is Logistic Costing?

Important Activity

Reduce logistic cost

Improves performance

TYPES OF LOGISTIC COST

Inventory Cost

Warehousing Costs

Production Costs

Transportation Costs

Communication and Data Processing Costs

Channels of Distribution costs

Material Handling Costs

Packaging Costs

Customer Service Costs

Need for logistical costing

Valuation of inventory for financial reporting.

Estimations of cost of activities, products,

services, etc..

Provide economic feedback to manager.

COST IDENTIFICATION
All costs associated with the performance of logistics
function should be in the activity based classification.
Typical logistics costs can be categorized under the
following headings:LOGISTIC COST

DIRECT COSTS

INDIRECT
COSTS

OVERHEADS

Activity Based Costing (ABC)

Individual activities are calculated after the

activities are performed.

Focused on individual activity.

To improve the round of performance compared to

last performance.

Continue..

Traditional allocation method

Costs

Products

Activity-based allocation method

Activities

Costs
First stage

Products
Second stage

Mission Based Cost (MBC)

The objective is to estimate cost for each mission

in advance.

Focused on the whole mission.

Improves present round of performance by doing

proper planning in advance.

MISSION P

290

MISSION Q

340

MISSION R

220

250

130

170

300
300

850

Thank
You