Production cost controlling is one important strategic task in any branch of industry, in sawmilling as well. Some of the production costs are also manageable elements in price setting. There is a need of precise knowledge of how the costs really act when some factor of production changes. This study tests an activity-based costing (ABC) method for a large scale sawmill that refines approximately 350 000 m3 roundwood annually. Sensitivity and applicability of the costing model were analysed with two case studies. This study supports the fact that the ABC method is a useful tool in cost controlling at a sawmill; and a cost structure of a sawmill has an effect on the logistic chain of timber procurement.
Keywords: Activity-based costing, sawmilling, sawing pattern, profitability
Authors
Korpunen H.
Finnish Forest Research Institute, Western Finland Unit, Parkano, Finland
Uusitalo J.
Finnish Forest Research Institute, Western Finland Unit, Parkano, Finland
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