Activity Based Costing / Management

Activity Based Costing / Management

Activity-Based Costing / Management (ABCM) and Profitability Analysis are used to determine cost,
analyze processes and understand profitability.

Cost & Profitability Perspective

Cost & profitability information enables strategic decisions about pricing, product mix, distribution channels, customer profitability, shared services pricing, and outsourcing.  To determine cost, we begin with an organization’s Resources (e.g., People, Facilities, Equipment, Materials, etc…).  Next we determine what Resources are required to perform Activities and how these Resources are consumed.   Next we determine what Activities are required to produce or support Cost Objects (e.g. Products, Services, Customer Segments, Distribution Channels, etc…) and how these Activities are consumed.  Next we combine these costs with revenue at a more granular level to help illuminate profitability.

Process Perspective

Process information enables deeper analysis into how well the organization is performing.  We identify Cost Drivers and Performance Metrics to enable intelligent decisions about targeting process improvements, streamlining workflow, eliminating rework, and adopting best practices.

We have built over hundreds of ABCM models in five countries.  We are experts in project management, design, data collection, data transformation, implementation, systems integration, automation, documentation, facilitation, staffing, training, and presentations.  We are experts in SAS ABM and MyABCM and have written custom calculation engines and star schemas.

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