Which of the following costing approaches directly reflects logistics performance?
Which of the following costing approaches directly reflects logistics performance?
Activity-based costing (ABC) is a costing approach that allocates overhead and indirect costs to specific activities, including logistics operations. By capturing these logistics activities, ABC provides a more accurate reflection of logistics performance. This method identifies the actual costs associated with specific processes and can provide insights into efficiencies and inefficiencies within the logistics function, thus directly reflecting logistics performance.
activity based - Module 2,page 194
I believe the question is referring to the total logistics costs which would include total landed costs in addition to several other services available through logistics providers.
Landed costs are usually taken under consideration to evaluate logistics
today’s leading supply chain companies develop functional cost analyses and activity-based costing activities that measure the total cost of logistics.( Words in module 5)
costing approach that directly reflects logistics performance is the Activity-based costing approach
Total landed cost explicitly factors in logistics cost, others may or may not have logistics cost built in them.
Answer is A https://www.mbaknol.com/logistics-management/activity-based-costing-in-logistics/