Glossary
Your Go-To Resource for Understanding Key Logistics Terms
Enhance your knowledge and become an expert in e-commerce shipping and checkout processes with our detailed glossary. Explore the essential terminology you need to succeed in the online retail space.
ABC Costing
Activity-Based Costing – A costing method that assigns costs to products based on the activities required to produce them, providing a more accurate reflection of the costs incurred.
ABC Inventory Control
An inventory management approach that prioritizes products based on their classification in the ABC analysis, focusing more resources on the most valuable items.
ABC Model
In cost management, a representation that illustrates the cost of resources used over a period and how these are consumed by activities and subsequently traced to products, services, or customers.
ABC System
A cost management system that tracks financial and operational data on resources, activities, drivers, and measures. ABC models are created and maintained within this system.
Abnormal Demand
Demand that falls outside the limits established by management policy, often due to new customers or changing needs of existing customers.
Absorption Costing
A method of inventory valuation where both variable and a portion of fixed costs are assigned to each unit of production. Fixed costs are typically allocated based on labor hours, machine hours, or material costs.