Verein Deutscher Ingenieure

Activity-based cost analysis in internal logistics
 N VDI 4405 BLATT 1

Annotation

Introduction

Preliminary note

This guideline was elaborated by the task force of the VDI-FML technical subdivision A2 "Logistic systems".

In the classical methods of cost centre and results accounting, the logistic costs arising – which today represent a substantial proportion of the overall costs depending on the sector – are mainly being distributed over the product and services costs on the basis of costing rates.

Classical cost accounting systems generally

- fail to consider adequately and differentiate between types of logistic costs,

- have little concept of logistic performances, and

- problems with linking logistic costs and logistic performances.

Activity based costing is not an entirely new overall concept which would represent a total reorientation of the cost accounting approach. It is, rather, an integrated method aimed ultimately at registering, calculating, allocating and controlling all costs on the basis of an uncompromising capacity and process-oriented approach.

Services companies have been using process calculations for years now whose methodology is applied – even more rigorously – in activies based costing.

This guideline is limited to the observation of internal logistic processes. The procedure described can, however, also be applied to cross-system logistic chains.