In this video, learn how to effectively engage with consumers of the ABC model and sell the value of the insights you have discovered.
- Many people I've spoken with see activity based costing … as some kind of an accounting theme. … Now part of the reason for this … could just be as simple as the fact that ABC … is often run out of finance departments. … Now don't get me wrong. … There is a heavy technical component … to delivering a successful ABC, … and depending on how complex the model is, … it may be rather sophisticated, … but I see ABC as a vehicle that can solve business problems … rather than accounting ones. … Accounting is purely an input into ABC. … So, with this in mind, … it's important that you are able to … articulate the outcomes of ABC, … in a way that respects the requirements of accountants, … but more importantly, … does it in a way that addresses the business's needs. … And there are no major surprises here. … Simply take the time to write up your findings, … and then meet with the relevant ABC stakeholders, … and step them through your insights. … Depending on how complex your model is, … the depth of detail in your report may differ, …
- 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