8/18/2019 Process Based
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Process-based cost accounting
The special calculation for logisticsIn logistics, conventional
cost-performance accounting based on overhead
calculation reaches its limits. As a result of various
difficulties, it is hardly
possible to obtain a suitable allocation of the costs. Another
approach is to
switch to process-based cost accounting, which offers an
improved
presentation of the costs of indirect service areas such as
marketing or
logistics. In this way, it is possible to achieve a more
usage-based distribution
of these overhead costs.
Logistics-focused cost accountingProcess-based cost accounting
is suggested as a way to refine logistics-based
cost-performance accounting in order to overcome the problems
faced by
traditional cost-performance accounting in the tracking of
logistics costs andperformance. These problems include:
The adequate presentation of the logistics area - e.g., the
question of
whether waiting time at the ramp is a part of the transport
time. The precise allocation of cost units - e.g., the
question of determining to
which contract overhead costs at the warehouse should be
allocated and to
what extent. The lack of a closed cost theory for the
logistics area, among other things,
because of the high complexity of cost functions - e.g.,
transport costs are
determined not only by the size of shipment and distance, but
also by type
of roads and driving styles.
A central problem of traditional overhead calculation is that
logistics overhead
costs cannot be allocated in accordance with the cause of the
cost as
overhead surcharges for material, production or sales on
products.
The idea behind process-based cost accounting is to precisely
record the costs
generated during processes. To fulfill this purpose, the
following steps are
conducted [1].
Steps in process-based cost accounting
Identification of the actual causes of the output and cost
volume, the so-
called process factors, reference values and cost drivers.
Traditional cost
accounting generally concentrates on unit quantities and unit
prices. But
process-based cost accounting also includes, in addition to
employment, the
array of variations, complexity of the products and production,
and the size
of the contract as cost factors. Once the process factors
are set, the process quantities can be determined
by counting the number of material orders, material deliveries,
etc. Process cost-unit rates can be determined by dividing the
costs allocated to
a process by the related process quantities. Identified,
functionally related subprocesses are added to main processes
in
a manner that extends across cost centers.
DHL Logbook - in cooperation withTechnical University
Darmstadt
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