Why is Activity-Based Costing Important?
ABC/M is ideal for multiple product, multiple service, and multiple client organizations who are suffering from incorrect costing information. Traditional cost allocation methods allocate overheads by arbitrary allocations of indirect costs which are often wrong. ABC/M minimizes these distortions in your costing.
Unlike traditional allocation methods which cannot be linked tied to specific outputs, ABC/M helps identify indirect costs and identifies pockets of process efficiencies. It makes you more competitive by measuring product and client profitability with higher accuracy and helping determine the cost-effectiveness of activities and processes.
ABC/M is for Organizations of all Sizes, Industries and Sectors
Contrary to popular belief, ABC/M is not just for the Fortune 500, as its principles and effects are the same for smaller organizations. It provides a clear metrics for improvement, and encourages management teams of all sizes to discover opportunities to improve their business process effectiveness.
By helping managers identify their value-added activities – those that will best accomplish a mission, deliver a service or meet a customer demand – ABC/M improves decision-making with better information and eliminates waste by encouraging employees to look at all costs. The essential part of any ABC/M endeavor is to get a clear picture of the activities and processes that the entire organization performs. When employees understand the activities they perform, they can then better understand the costs involved.
In addition we have vertical and robust solutions that span manufacturing, distribution, banking (Vantage Point), public sector and service sector. Call us so that we can show you how we can reduce time to market for your needs at a cost lower than any other global vendor of services and software.