This document discusses logistics cost accounting methods. It introduces total logistics cost and activity-based costing (ABC) as methods to more accurately assign costs. ABC assigns overhead and indirect costs to specific activities, products, or services. Traditional accounting methods like balance sheets and profit/loss statements group expenses less precisely. The document also covers cost identification, time frames, formatting, and presentation of logistics costs.

1. GANESA MOORTHY.V
AYYA NADAR JANKI AMMAL COLLEGE
SIVAKASI

2.  Introduction
 Concept of Total Logistics Cost
 Accounting Methods
 Limitation
 Logistics Performance Evaluation
 Deficiencies Of Traditional Accounting
 Activity Based Costing[ABC]
 Concept Of ABC
 Cost Of Identification

3.  Cost Time Frame
 Cost Formatting
 Ways Of Formatting
 Total Cost Persentation
 Method

4.  Logistics costs are the result of the process
that begins with the supply of the raw
material and ends with the delivery of the
product(s) to the customer, and this involves
the main logistics operations such as supply,
physical conversion and distribution
(Rybakov, 2017).29-Sep-2020.

5.  The total cost concept complement designing
Of logistics as an integrated performance
system.

6.  Two types of Accounting Methods
1.Balance Sheet
2.profit & loss statement

7.  Balance Sheet:
Balance sheet reflects the
financial position of the firm at a specific
point in time while its purpose is to
summarize assets and liabilities and to
indicate the the net worth of ownership.

8.  Financial statement follow generally accepted
accounting practices, designed to meet the
requirement of investor and taxation agencies
of central state and local government.
 The practice of grouping expenses into
separate accounts such as salaries,rent and
Deperciation fail to identify or assign operation
responsibility.

9. It become necessary to
identify costs associated with performing
specific logistic activities or tasks such as the
warehousing expenses for specific SKU.

10. Progressive procurement
procedure require that expenses for all
services including transportation are
identified separately from purchase cost for
evaluation purposes.

11.  Activity-based costing (ABC) is a costing method that
assigns overhead and indirect costs to related products
and services.
 This accounting method of costing recognizes the
relationship between costs, overhead activities, and
manufactured products, assigning indirect costs to
products less arbitrarily than traditional costing methods.
 However, some indirect costs, such as management and
office staff salaries, are difficult to assign to a product.

12.  Activity-based costing (ABC) is a method of
assigning overhead and indirect costs—such
as salaries and utilities—to products and
services. The ABC system of cost accounting
is based on activities, which are considered
any event, unit of work, or task with a specific
goal.

13.  Specific identification is a method of finding
out ending inventory cost. When this
information is found, the amount of goods
are multiplied by their purchase cost at their
purchase date, to get a number for the
ending inventory cost

14.  The long run refers to a period of time where
all factors of production and costs are
variable, and the goal is to produce at the
lowest cost.

15.  The typical way to format activity-based cost
is to assign expenses to the event being
managed.
A. Customer order
B. Channels
C. Products
D. Value added services

16.  Three types of formating;
1.Functional grouping
2.Allocated grouping
3.Fixed variance grouping

17.  A cost is the value of money that has been
used up to produce something.
 Definition of cost The expenses faced by
the
business in the process of supplying goods
and services to consumer.

18. Cost Method is one of the most
conservatives methods of accounting for
investments where the investment stays on the
balance sheet at its original cost, unlike the fair
value or revaluation method where the market
factors and various internal management
models are used for determining the fair value.


19. THANK YOU