LOGISTICAL COSTS AND ACCOUNTING PROCESSES

Abstract

Logistics was first used in military units in the early 19th century as a term. After World War II, it
was used in civilian life, and entered the business literature in 1963. With the diversification of the
supply chain and the increased technological advances thus far, it has also facilitated the integration
of logistics activities. Logistics refers to all processes for the relevant product, from the original
manufacturer to the end consumer, such as transportation, storage, customs, packaging, distribution,
and so on. It is the planning, implementation and audit process for effectively and efficiently
moving and storing all products from the point of origin to the point of destination for the
customer's needs.
Logistical activities are enabling safe, economic and rapid delivery of products to customers across
production and consumption points, capturing benefits such as businesses in different markets, and
increasing market share. It is the establishment of an appropriate accounting information system
which needs to be done for calculating logistical costs in a manner consistent with the needs of
businesses when running their logistics business. The main building blocks of the accounting
information system are the registration system. The objective of this study is to explain logistical
costs, accounting classification of logistical costs, elements of logistical costs, and sample practices
for accounting logistical costs.