Included in the ABC materials provided by the IMA (Institute of Management Accountants) on the Internet is a discussion of ABC for logistics. After reading these materials, discuss how activity-based costing can be used to control and allocate the costs of logistics. In your discussion describe what activities are captured by the word “logistics,” what are typical activities for logistics, what are typical cost drivers for logistics, and why logistics costs are a growing concern of businesses today.

LO1