Upgrading Multilevel Full Cost Allocation: Case Transport

Abstract

Multilevel full cost allocation is an effective alternative of traditional, accounting oriented costing regimes and is applied in the transport sector as well. Nevertheless, its basic algorithm may fail when the cost calculation model contains so called performance feedbacks. This is often the case in transport management practice, especially in complex operational systems. Hence effective solutions are to be found to cope with this methodological problem. This paper aims at contributing to the improvement of multilevel full cost allocation method when performance feedbacks hinder the exact calculation. The application of estimated cost ratios or specific costs is proposed and tested on a theoretical transport costing example. If some methodological requirements can be met both parameter estimations may be employed effectively in calculation tasks with performance feedbacks.

A comparative analysis of road and rail freight transport through the Republic of Serbia from the aspect of external costs

“…Traditional and improved costing approaches can be implemented in transport management. The principle of multistage allocation of total costs was adjusted to the specific characteristics of the transport used in the practical example in [5]. The model in [6] was developed for predicting the volume of railway transport that can be applied in different economic contexts and used as a means of transport planning.…”