Activity Based Costing and Decision Support

Abstract

Logistics is critical to the fulfillment of customer demands. Top management of companies is now more closely involved in logistics decisions and the importance of the consequences of these decisions is growing. It is crucial to support these decisions with relevant financial information. Companies often lack useful tools to generate this financial information. This paper presents a logistics management accounting framework to support logistics management decisions. In this distribution cost model the benefits of Activity Based Costing with regard to the allocation of costs and the control of processes are combined with the benefits of cash flow based accounting with regard to decision support.

Citation

van Damme, D.A. and van der Zon, F.L.A. (1999), "Activity Based Costing and Decision Support", The International Journal of Logistics Management, Vol. 10 No. 1, pp. 71-82. https://doi.org/10.1108/09574099910805941