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Activity-Based Cost Management

PublisherSAS Institute
Format437.8KB PDFDate added01 Sep 2004
Topics Cost Control - Risk Mgmt., Planning and Services
Downloads44

The traditional "overhead functions" of a business, once widely criticized by internal customers, are becoming today's shared services organizations. The initial consolidation of functions into a single service provider may have been designed simply to remove redundancies and save costs. However, a pleasant, unexpected consequence of shared services can be substantially improved levels of customer service. In order to transform overhead functions into more than merely cost-effective internal suppliers, fact-based information is required. The fact-based information provided by activity-based cost management (ABC/M) enables shared service providers to perform like their counterparts in the external market.

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