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Conditional Resources in ABC
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Activity Based Costing
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Mark
17
Mark, UK

Conditional Resources in ABC

How does ABC cater for estimating the cost of business processes which may take many different routes depending on the outcome of decisions or events - for instance, a resource may only be used once in every hundred runs of the process, therefore is only 1% of the resource cost included in the estimate??

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  Charles
0
Charles, UK
 

Conditional Resources

Most ABC/M models are built using real transactional or operational metrics extracted from the business OLTP systems as the basis for assignment. So if the data indicates that the resource was used 99% of the time for process A, and only 1% for process B, the model should reflect this.

 

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More on Activity Based Costing
Summary Discussion Topics
topic Limitations and Advantages of ABC for Budgeting
topic Limitations ABC monitoring operations
topic ABC in an Advertising Firm?
topic The Cost of Non-value-added Activities
topic ABC: reduce non value adding activities?
topic Consequences of ABC Analysis
topic Capacity Minutes and Industry Norms
topic Drivers still Right?
topic ABC Helps Companies Survive Recession
topic Traditional Costing versus Activity Based Costing
topic The Process of Activity Based Costing (ABC) simplified
topic Activity Based Costing (ABC)
👀Conditional Resources in ABC
topic ABC in service companies such as airlines?
topic Overhead Costing - Food Manufacturing
topic Degree of Detail in ABC
topic Activity Based Costing Implementation
topic ABC and Decision making
topic Time-driven ABC (TDABC)
topic Activity Based Management (ABM)
topic Calculating the Most Profitable Way of Manufacturing a Product
topic ABC or TOC? The Differences between Activity Based Costing and the Theory of Constraints
topic Recommended ABC Software
topic Comparison Activity Based Costing, Time-Driven-ABC and Lean Accounting
topic ABC Costing in Make to Order of Repetive Manufacturing
topic Organizational Issues when Introducing ABC
topic Over Recovery / Under Recovery Level
🔥 What is Process Costing?
topic ABC in the Federal Environment
topic An ABC Initiative is Only as Effective as the Software That Supports It
topic What is Job Order Costing?
topic How to Derive Overhead Cost from a P&L?
Special Interest Group
Knowledge Center

Activity Based Costing


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