Activity Based Costing (ABC)

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Activity Based Costing (ABC) is a multi-dimensional costing system. It replaces the traditional costing systems and provides more accurate and relevant costs of business processes, particularly for product pricing/profitability purposes.

In ABC, costs are assigned from General Ledger accounts to activities by activity drivers and activity performance is measured by cost drivers. An activity may have multiple cost drivers and business processes can be made up of multiple activities.

The two dimensional nature of spreadsheets is not suited for ABC and it is generally necessary to buy expensive database software applications that have limited user-definability.

Because Quantrix is a very powerful multi-dimensional modeling tool, it is very suited to the multi-dimensional nature of ABC.

I was therefore wondering if anybody has developed an ABC model in Quantrix and whether or not they have a Quantrix ABC template or beta model that they could email to me.

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[quote:ej5o8dz3][i:ej5o8dz3]Originally posted by Steven B. [/i:ej5o8dz3]
[b:ej5o8dz3]Frank, if you have a specific need for an ABC model, I would be willing to help you with it’s design. I think it is an interesting model and could be a nice template to build using some of the latest features of Quantrix. What can be really powerful is to run scenarios in Quantrix such as changing some overhead rates and drivers to quickly determine which variable will be best.

Steve [/b:ej5o8dz3][/quote:ej5o8dz3]

Steve,

I will start developing an ABC model and will email a copy of it to you.

What is your email address?

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