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LOGISTIC COSTING

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Logistic Costing

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LOGISTIC COSTINGDARSHAN TARTE 177SANDEEP TATE 178POOJA THAKKAR 183VATSAL THAKKAR 184CHIRAG VADGAMA 189BHAVYA VIRA - 190

GROUP MEMBERSImportant Activity

Reduce logistic cost

Improves performance

What is Logistic Costing?Inventory Cost

Warehousing Costs

Production Costs

Transportation CostsTYPES OF LOGISTIC COST

Communication and Data Processing Costs

Channels of Distribution costs

Material Handling Costs

Packaging Costs

Customer Service Costs

Valuation of inventory for financial reporting.

Estimations of cost of activities, products, services, etc..

Provide economic feedback to manager.

Need for logistical costing

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:-

COST IDENTIFICATIONLOGISTIC COSTDIRECT COSTSINDIRECT COSTSOVERHEADSIndividual activities are calculated after the activities are performed.

Focused on individual activity.

To improve the round of performance compared to last performance.

Activity Based Costing (ABC)Traditional allocation method

Activity-based allocation method

Continue..CostsProductsCosts

ActivitiesProductsFirst stageSecond stageThe 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 Based Cost (MBC) 1 2 3 4

MISSION P 290

MISSION Q 340

MISSION R 220 250130170300300850ThankYou


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