# Activity-based costing in logistics

*Last updated: 2026-06-23*

> Freight forwarders and logistics providers using conventional cost accounting routinely receive distorted margin signals – because overhead is spread uniformly across all business, regardless of what each activity actually consumes.

Freight forwarders and logistics providers using conventional cost accounting routinely receive distorted margin signals – because overhead is spread uniformly across all business, regardless of what each activity actually consumes. Activity-based costing (ABC) corrects this by assigning indirect costs to the specific logistics activities that generate them: transportation, warehousing, order picking, customs clearance, last-mile delivery. Each activity is measured by its actual resource consumption, and costs flow from there to individual shipments, customers, or trade lanes. The result is a clear picture of where margins are real and where they are illusory. In logistics, ABC underpins sound pricing decisions, customer profitability analysis, and targeted process improvement.

**Source:** [https://www.investopedia.com/terms/a/abc.asp](https://www.investopedia.com/terms/a/abc.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Activity-based costing in logistics |
| Language | EN |
| Word count | 106 |
| Last updated | 2026-06-23 |
| Source | https://www.investopedia.com/terms/a/abc.asp |

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*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/activity-based-costing-in-logistics](https://www.freight-academy.com/en/glossary/activity-based-costing-in-logistics)*

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