Cost analysis alphabet

An ABC analysis (read “ABC analysis”) is a costing system based on a specific method of allocating indirect (indirect) costs to the final product (not to be confused with ABC (“a-be-tse”) analysis - by dividing the commodity nomenclature into groups that are significant by any criteria, using the Pareto principle).

It is believed that abc-systems are best suited to organizations working in the service sector, since most of the costs of such organizations are constant and indirect. But with all the features of logistics, cost accounting systems by type of activity are attractive to her as well. In logistics, the key event is formed by the customer’s order, the actions associated with it and the corresponding costs, reflecting the work that needs to be done to ensure the order. In other words, the calculation of logistic costs by type of activity should give managers information that allows them to determine whether a particular client, order, product or service is profitable.

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