In this video, learn how to undertake effective quality assurance and also build QA into the ABC model for quick analysis.
- It's amazing how often I see ABC models … where the dollars in don't equal the dollars out, … and stakeholders can't stand this. … Trust me, if you try to discuss an ABC report … where the inputs don't match the outputs, … then don't even bother trying to talk about your insights. … No one is going to listen. … But luckily, there are some simple checks and balances … we can put in place to safeguard against these happening. … I encourage you to follow along with me … by opening the Excel exercise file for this video, … and make sure that you're in the Structure worksheet. … As you can see, we have a completed basic ABC model, … but what we don't have is anything that tells us at a glance … that dollars in equals dollars out. … So, let's do it. … In cell C21, type equals, … then select cell C17. … Then hit enter on the keyboard. … Next, in cell C22, type equals and then select N30 … and hit enter once more. … We also have a variance calculation here in C23, … which is the difference between the inputs and outputs. …
- Why use activity-based costing (ABC)?
- How ABC can help organizations make more informed decisions
- Defining cost objects and activity drivers
- Reviewing source data
- Building the ABC model
- Preparing ABC reports
- Advising stakeholders on outcomes