Activity Based Job Order Costing in Product Storage
With high degree of automation, modern storage activities are not labor intensive to the same degree as they
used to be. Therefore, the traditional cost estimation approaches in management accounting based on volumetric measures
are inadequate to asses these costs accurately. Contemporary approaches such as activity based costing track hidden costs by
relating them to the specific activities, thus providing a much more realistic estimation for storage costs. The present paper
proposes an activity based costing model assuming normally distributed requirements.