2. Logistical costing An important activity of Logistics Management to reduce logistical costs to improve performance Methods of logistical costing Traditional costing method & total cost method Types of modern costing methods Mission based costing and activity based costing
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8. Activity Based Costing All logistical activities involved in product delivery are identified and resource consumption is calculated
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10. Types of costs Direct costs, indirect costs and overhead costs. Direct or operational costs: Transportation, material handling, warehousing and some aspects of order processing and inventory – can be allocated to a customer’s order Indirect costs: indirect costs are cost of capital resources of logistics – allocation is difficult, generally discretionary
