When starting to build ABM models there are a number of things to consider before plunging into the detail. As always, some thought and planning at an early stage will prevent a path being taken that leads to an inefficient model or one that does not answer the business issues ABM was hoping to address. When structuring a model there are a number of key points to consider. This paper starts with a schematic plan of the flow of costs in the model. Next the paper explains the need to understand the general ledger and determine how one will assign costs to activities. The paper explains the basic principles of building ABM models.
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