ACTIVITY-BASED COSTING : CASE: DFDS LOGISTICS
Hovila, Henri (2010)
Hovila, Henri
Kymenlaakson ammattikorkeakoulu
2010
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2010112014860
https://urn.fi/URN:NBN:fi:amk-2010112014860
Tiivistelmä
Activity-Based Costing has been successful in large-scale industries for improving the operational performance by providing appropriate and accurate information on the consumption of resources. Despite the fact that Activity-Based Costing has an important role in improving performance of large-scale companies, it has not received significant attention from small and medium-sized businesses, although activity-Based Costing has been used and studied extensively in large-scale companies.
This study focuses on Activity-Based Costing in small and medium-sized logistics company called DFDS Logistics. More specifically, this study focuses on transport costs of DFDS Logistics which occur in Finland. DFDS Logistics is a service company. All trucking, reloading and transport services are subcontracted from other companies in Finland. In this study Activity-Based Costing calculations are done from three different loading places with three different prices per kilometer to seven ports in Finland.
As a result of the study it can be said that distance between loading place and port determines strongly the total costs in Finland. Therefore the closest ports should be used for shipments from Finland to specified ports on the Continent if it is possible and sea freight is at same level between ports. Based on these findings DFDS Logistics should investigate possibilities to expand operations in future to all main ports of Finland that can be used for shipments of trailers to the Continent. Based on the fact that DFDS Logistics is owned by shipping company DFDS A/S, these investigations can be part of market research of shipping branch analysis in Finland.
This study focuses on Activity-Based Costing in small and medium-sized logistics company called DFDS Logistics. More specifically, this study focuses on transport costs of DFDS Logistics which occur in Finland. DFDS Logistics is a service company. All trucking, reloading and transport services are subcontracted from other companies in Finland. In this study Activity-Based Costing calculations are done from three different loading places with three different prices per kilometer to seven ports in Finland.
As a result of the study it can be said that distance between loading place and port determines strongly the total costs in Finland. Therefore the closest ports should be used for shipments from Finland to specified ports on the Continent if it is possible and sea freight is at same level between ports. Based on these findings DFDS Logistics should investigate possibilities to expand operations in future to all main ports of Finland that can be used for shipments of trailers to the Continent. Based on the fact that DFDS Logistics is owned by shipping company DFDS A/S, these investigations can be part of market research of shipping branch analysis in Finland.