Activity-Based Costing
- Topics:
- Strategic Management Tools
- Source:
- Business Managers' Conferences
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Overview: This presentation provides detail information on one of the most important strategic management tool known as Activity-Based Management. It enumerates one of its basic elements known as activity-based costing. Activity Based Costing is a modeling technique where costs are expressed in terms of Resources, Activities, and Products. It states that assigning cost in ABC is a two step process such as: assigning resource costs to the actual process that consume those costs, and assigning activity costs to the actual products delivered. It defines the legislation procedures applicable to ABC with their purposes, talks about implementation challenges such as ensuring maintainability, balancing uniformity and flexibility, getting buy-in/long-term commitments. In nutshell, Activity based management can be defined as management of activities and corresponding cost within the production process by using ABC information, number of activities includes are budgeting, sourcing, communication etc. Activity based costing provides insight into the cost of doing business “How we do business.” As a result, leaders and managers are armed with information to more efficiently run their organizations.
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Format: HTML | Size: 340KB | Date: Jan 2003 | Pages: 69
