Communications - Scientific Letters of the University of Zilina 2019, 21(4):35-42 | DOI: 10.26552/com.C.2019.4.35-42

Application of the Activity-Based Costing to the Logistics Cost Calculation for Warehousing in the Automotive Industry

Tomas Kucera1
1 Department of Transport Technology and Control, Faculty of Transport Engineering, University of Pardubice, Czech Republic

Activity-based costing is one of the procedures that proved to be very suitable for the financial management of warehouse activities in the automotive industry. Accurate and up-to-date data enables managers to properly plan and manage all the warehousing related activities in the automotive industry. In the activity-based costing approach, overheads costs are allocated in relation to specific logistics activities of the company. The aim of the article is the application of activity-based costing to the logistics cost calculation for warehousing in the automotive industry. The article focuses on the practical application of activity-based costing to the logistics cost calculation for warehousing in the automotive industry to a particular logistics service provider. It highlights the positive and negative use of this method in the practical case study, which is one of the major qualitative scientific methods. The resulting effect of using the activity-based costing method should be to refine the information that is used for the decision-making problems of the top management of the logistics service provider.

Keywords: activity-based costing; logistics cost calculation for warehousing; automotive industry; logistics costs

Received: April 3, 2019; Accepted: June 11, 2019; Published: October 1, 2019  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Kucera, T. (2019). Application of the Activity-Based Costing to the Logistics Cost Calculation for Warehousing in the Automotive Industry. Communications - Scientific Letters of the University of Zilina, 21(4), 35-42. doi: 10.26552/com.C.2019.4.35-42
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. MARQUEZ, F. P. G., PARDO, I. P. G., NIETO, M. R. M. Competitiveness based on logistic management: a real case study. Annals of Operations Research [online]. 2015, 233(1), p. 157-169. ISSN 0254-5330, eISSN 1572-9338. Available from: https://doi.org/10.1007/s10479-013-1508-z Go to original source...
    2. WIRATCHAI, A., LILAVANICHAKUL, A., PARTHANADEE, P. Analysis of logistics costs for rice mills in improving the aroma of jasmine rice. 3rd International Conference on Agro-Industry - Competitive & Sustainable Agro-Industry: proceedings [online]. 2018. ISSN 2413-0877, p. 146-153. Available from: https://doi.org/10.18502/kls.v4i2.1666 Go to original source...
    3. YANG, C. S., LU, C. S., XU, J., MARLOW, P. B. Evaluating green supply chain management capability, environmental performance, and competitiveness in container shipping context. Journal of the Eastern Asia Society for Transportation Studies [online]. 2013, 10, p. 2274-2293. ISSN 1881-1124. Available from: https://doi.org/10.11175/easts.10.2274
    4. WU, D., HUO, J., ZHANG, G., ZHANG, W. Minimization of logistics cost and carbon emissions based on quantum particle swarm optimization. Sustainability [online]. 2018, 10(10), p. 1-15. ISSN 2071-1050. Available from: https://doi.org/10.3390/su10103791 Go to original source...
    5. RUTNER, S. M., LANGLEY, C. J. Logistics value: definition, process and measurement. The International Journal of Logistics Management [online]. 2000, 11(2), p. 73-82. ISSN 0957-4093. Available from: https://doi.org/10.1108/09574090010806173 Go to original source...
    6. LAMBERT, D. M., BURDUROGLO, R. Measuring and selling the value of logistics. The International Journal of Logistics Management [online]. 2000, 11(1), p. 1-16. ISSN 0957-4093. Available from: https://doi.org/10.1108/09574090010806038 Go to original source...
    7. LYNCH, D. F., KELLER, S. B., OZMENT, J. The effects of logistics capabilities and strategy on firm performance. Journal of Business Logistics. 2000, 21(2), p. 47-68. ISSN 2158-1592.
    8. KUCERA, T. Logistics cost calculation of implementation warehouse management system: a case study. MATEC Web of Conferences [online]. 2017, 134, p. 1-7. ISSN 2261-236X. Available from: https://doi.org/10.1051/matecconf/201713400028 Go to original source...
    9. QIU, M., MING, Z., LI, J., GAI, K., ZONG, Z. Phase-change memory optimization for green cloud with genetic algorithm. IEEE Transactions on Computers [online]. 2015, 64(12), p. 3528-3540. ISSN 0018-9340. Available from: https://doi.org/10.1109/TC.2015.2409857 Go to original source...
    10. XUE, Y., GE, L. Cost optimization control of logistics service supply chain based on cloud genetic algorithm. Wireless Personal Communications. 2018, 102(4), p. 3171-3186. ISSN 0929-6212, eISSN 1572-834X. Go to original source...
    11. BOKOR, Z. A koltseggazdalkodas korszerusitese a kozlekedesben, kulonos tekintettel a kozossegi kozlekedesre / Improving cost calculation in transport with special regard to public transport (in Hungarian). Kozlekedestudomanyi Szemle / Review of Transportation Sciences. 2008, 58(4), p. 31-36. ISSN 0023-4362.
    12. BOKOR, Z. Elaborating cost and performance management methods in transport. Promet - Traffic&Transportation, Scientific Journal on Traffic and Transportation Research [online]. 2009, 21(3), p. 217-224. ISSN 0353-5320, eISSN 1848-4069. Available from: https://doi.org/10.7307/ptt.v21i3.228 Go to original source...
    13. BOKOR, Z. Cost calculation in complex transport. LOGI Scientific Journal on Transport and Logistics. 2013, 4(1), p. 5-22. ISSN 1804-3216, eISSN 2336-3037.
    14. KUCERA, T., HYRSLOVA, J., SOMMERAUEROVA, D. Activity-based costing as an innovative management method to logistics cost calculation for warehousing. 4th International Multidisciplinary Scientific Conference on Social Sciences & Arts SGEM 2017 : proceedings. Book 1, Vol. 5. 2017. ISBN 978-619-7408-17-1, ISSN 2367-5659, p. 25-32.
    15. KUCERA, T., Cost management in logistics of warehousing: the use of activity-based costing in the logistics service provider. International Conference on Traffic and Transport Engineering: proceedings. 2018. ISBN 978-86-916153-4-5, p. 449-453.
    16. MUSCATELLO, J. R., PARENTE, D. H., SWINARSKI, M. Aligning supply chain logistics costs via ERP coordination. International Journal of Information System Modelling and Design [online]. 2018, 9(2), p. 24-43. ISSN 1947-8186. Available from: https://doi.org/10.4018/IJISMD.2018040102 Go to original source...
    17. KOVRIZHNYKH, O. E., NECHAEVA, P. A. Analysis of transaction costs in logistics and the methodologies for their information reflection for automotive companies. Economic and Social Changes-Facts Trends Forecast [online]. 2016, 44(2), p. 186-201. ISSN 2307-0331. Available from: https://doi.org/10.15838/esc.2016.2.44.11 Go to original source...
    18. SKERLIC, S., MUHA, R. The Importance of systems for controlling logistics costs in the supply chain: a case study from the Slovenian automotive industry. Promet - Traffic&Transportation, Scientific Journal on Traffic and Transportation Research. 2016, 28(3), p. 299-310. ISSN 0353-5320, eISSN 1848-4069. Go to original source...
    19. DE KOSTER, M. B. M. Recent developments in warehousing. Rotterdam Erasmus University: Rotterdam School of Management, 1998.
    20. CHOY, K. L., CHOY, E. L. H., POON, T. C. A Real-time database management system for logistics systems: a case study. Portland International Conference on Management Engineering and Technology [online] 2008, p. 864-871. ISSN 2159-5100. Available from: https://doi.org/10.1109/PICMET.2008.4599694 Go to original source...
    21. ASKARANY, D., YAZDIFAR, H., ASKARY, S. Supply chain management, activity-based costing and organisational factors. International Journal Production Economics [online]. 2010, 127(2), p. 238-248. ISSN 0925-5273, eISSN 1873-7579. Available from: https://doi.org/10.1016/j.ijpe.2009.08.004 Go to original source...
    22. KOLOSOWSKI, M., CHWASTYK. P. Process approach in enterprise aided with activity based costing. 20th DAAAM International Symposium on Intelligent Manufacturing and Automation: proceedings. 2009, ISBN 978-1-5108-4001-0, p. 1117-1119.
    23. NIELSEN, L. B., MITCHELL, F., NORREKLIT, H. Management accounting and decision making: two case studies of outsourcing. Accounting Forum [online]. 2015, 39(1), p. 64-82. ISSN 0155-9982. Available from: https://doi.org/10.1016/j.accfor.2014.10.005 Go to original source...
    24. STERNAD, M. Metrics of logistics costs in Slovenian companies. 18th International Scientific Conference Business Logistics in Modern Management: proceedings. 2018. ISSN 1849-5931, p. 125-134.
    25. ZENG, A., ROSSETTI, C. Developing a framework for evaluating the logistics costs in global sourcing processes. International Journal of Physical Distribution & Logistics Management [online]. 2003, 33(9), p. 785-803. ISSN 0960-0035. Available from: https://doi.org/10.1108/09600030310503334 Go to original source...
    26. FUGATE, B. S., MENTZER, J. T., STANK, T. P. Logistics performance: efficiency, effectiveness, and differentiation. Journal of Business Logistics [online]. 2010, 31(1), p. 43-62. ISSN 2158-1592. Available from: https://doi.org/10.1002/j.2158-1592.2010.tb00127.x Go to original source...
    27. ENGBLOM, J., SOLAKIVI, T., TOYLI, J., OJALA, L. Multiple-method analysis of logistics costs. International Journal of Production Economics [online]. 2012, 137(1), p. 29-35. ISSN 0925-5273, eISSN 1873-7579. Available from: https://doi.org/10.1016/j.ijpe.2012.01.007 Go to original source...
    28. SKERLIC, S. The Impact of customers' demands for lower logistics costs in the automotive industry supply chain on companies' business processes. Zeszyty Naukowe Akademii Morskiej w Szczecinie / Scientific Journals Of the Maritime University of Szczecin [online]. 2018, 55(127), p. 86-92. ISSN 1733-8670, eISSN 2392-0378. Available from: https://doi.org/10.17402/305
    29. VON CEIMINSKI, G., KARRER, M., ZUR, M. Designing and implementing a framework for process-oriented logistics-costs measurement in an automotive-supplier group. Advances in Production Management Systems: New Challenges, New Approaches APMS 2009: proceedings. [online]. Vol. 338. IFIP Advances in Information and Communication Technology. Berlin, Heidelberg: Springer, 2010. ISSN 1868-4238, p. 499-505. Available from: https://doi.org/10.1007/978-3-642-16358-6_62 Go to original source...
    30. RANTASILA, K., OJALA, L. Measurement of national level logistics costs and performance. 2012 Summit of the International Transport Forum, on Seamless Transport: Making Connections: Discussion Paper, No. 2012-4 [online]. 2012. eISSN 2223439X. Available from: https://doi.org/10.1787/2223439X
    31. HAVENGA, J. Macro-logistics and externality cost trends in South Africa - underscoring the sustainability imperative. International Journal of Logistics Research and Applications [online]. 2015, 18(2), p. 118-139. ISSN 1367-5567. Available from: https://doi.org/10.1080/13675567.2015.1015509 Go to original source...
    32. WILSON, R. Ready for a new route. CSCMP's 25th Annual State of Logistics Report. 2015.
    33. STERNAD, M., KNEZ, M. Pomen obvladovanja logisticnih stroskov, logisticni sistemi prihodnosti (in Slovenian). The importance of logistics costs management, logistic systems of the future. Maribor: Visja Prometna Sola, 2008, p. 40-44.
    34. JONSSON, P. Logistics and supply chain management. Berkshire: McGraw-Hill Higher Education, 2008. ISBN 978-00-7711-738-2.
    35. OJALA, L., SOLAKIVI, T., HALINEN, H., LORENTU, H., HOFFMANN, T. Logonbaltic - state of logistics in the Baltic sea region, survey results from eight countries. LogOn Baltic master reports, 3. Turku: Turku School of Economics, University of Turku, 2007.
    36. BAYKASOGLU, A., KAPLANOGLU, V. Application of activity-based costing to a land transportation company: a case study. International Journal of Production Economics [online]. 2008, 116(2), p. 308-324. ISSN 0925-5273, eISSN 1873-7579. Available from: https://doi.org/10.1016/j.ijpe.2008.08.049 Go to original source...
    37. HANSEN, W., HOVI, I. B., VEISTEN, K. Logistics costs in Norway: comparing industry survey results against calculations based on a freight transport model. International Journal of Logistics Research and Applications [online]. 2014, 17(6), p. 485-502. ISSN 1367-5567. Available from: https://doi.org/10.1080/13675567.2014.899568 Go to original source...
    38. RANTASILA, K., OJALA, L. National-level logistics costs: an overview of extant research. International Journal of Logistics Research and Applications [online]. 2015, 18(4), p. 313-324. ISSN 1367-5567. Available from: https://doi.org/10.1080/13675567.2015.1016413 Go to original source...
    39. FENG, G. Z. The calculation and evaluation of enterprise logistics cost. Beijing: Machine Press, 2007. ISSN 1816-6075.
    40. TU, CH., WANG, A. On calculation of enterprise logistics cost with project accounting function of financial software. Journal of System and Management Sciences. 2011, 1(4), p. 71-82. ISSN 1816-6075, eISSN 1818-0523.
    41. YIN, M. Analysis and solutions of enterprises logistic cost management. Management World. 2007, 32, p. 36-41. ISSN 1002-5502.
    42. YUQIN, Z. Measures on reducing enterprise logistic cost. Logistic Economy. 2007, 33, p. 5-12.
    43. LIJUN, Z. Management of logistic cost based on activity analysis. Commercial Economic. 2007, 22, p. 21-28.
    44. BOKOR, Z., MARKOVITS-SOMOGYI, R. Applying activity-based costing at logistics service providers. Periodica Polytechnica Transportation Engineering [online]. 2015, 43(2), p. 98-105. ISSN 0303-7800, eISSN 1587-3811. Available from: https://doi.org/10.3311/PPtr.7700 Go to original source...
    45. BOKOR, Z. Improving transport costing by using operation modelling. Transport [online]. 2012, 26(2), p. 128-132. ISSN 1648-4142. Available from: https://doi.org/10.3846/16484142.2011.586111 Go to original source...
    46. GRIFUL-MIQUELA, C. Activity-based costing methodology for third-party logistics companies. International Advances in Economic Research [online]. 2001, 7(1), p. 133-146. ISSN 1083-0898, eISSN 1573-966X. Available from: https://doi.org/10.1007/BF02296598 Go to original source...
    47. STEVENSON, T. H., CABELL, D. W. E. Integrating transfer pricing policy and activity-based costing. Journal of International Marketing [online]. 2002, 10(4), p. 77-88. ISSN 1547-7215. Available from: https://doi.org/10.1509/jimk.10.4.77.19552 Go to original source...
    48. GROS, I., GROSOVA, S. Dodavatelske systemy / Supply chain management (in Czech). Prerov: Vysoka skola logistiky, 2012. ISBN 978-80-87179-20-8.
    49. GROS, I., BARANCIK, I., CUJAN, Z. Velka kniha logistiky / Great book of logistics (in Czech). Praha: Vysoka skola chemicko-technologicka v Praze, 2016. ISBN 978-80-7080-952-5.
    50. GARRISON, H. R., NOREEN, E. W., BREWER, P. C. Managerial accounting. Boston: McGraw-Hill Education, 2017. ISBN 978-12-5930-741-6.
    51. WATANAPA, A, PHOLWATCHANA, S., WIYARATN, W. Activity-based costing analysis for train station's service. Engineering Journal [online]. 2016, 20(5), p. 135-144. ISSN 0125-8281. Available from: https://doi.org/10.4186/ej.2016.20.5.135 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content