Activity-Based System

Activity-Based System

Any computer system or other algorithm that provides quantitative information on a company's activities. This may be used in activity-based management.
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2 The activity-based system provides the measurement system to capture performance improvements and the kaizen costing system provides the incentives and mechanisms to reduce costs.
Articulation of the two activity-based systems occurs when, periodically, the strategic costing system is refreshed to reflect the latest values of the updated standards from the operational improvement system.
ABC can be used to evaluate EDI because an activity-based system assigns costs to specific products based on the products' use of activities.
Linking SAP's R/3 activity-based system with Primavera's project management systems will provide valuable benefits to our joint customers," said John Capobianco, vice president of marketing at Primavera.
Whereas, in an activity-based system, in addition to a direct labor pool, you might have many other pools.
Digital Harmony's customers -- including Cirrus Logic/Crystal, JBL Professional, Lexicon, Nippon Columbia, Peavey Electronics, QSC Audio Products, and TC Electronic -- are creating advanced audio products that set the standard for networked production studios and live sound systems, with modern features such as facility-wide system control and content routing, activity-based system presets, professional production assistants (PPAs), and automated online firmware upgrades.
Activity-based systems are founded upon the principle that activities consume resources and products consume activities.
Over the past decade, an increasing number of companies have begun to use activity-based systems to manage entire businesses.
Conditional and zero-based activities have been noted increasingly as companies have begun to question customers directly about which activities add value, and as they use activity-based systems to manage entire organizations rather than just operational areas.
When activity-based systems are designed that purport to achieve both objectives, maximalist systems usually evolve.
While activity-based systems (ABS) have existed under various names throughout this century, activity-based costing (ABC) didn't become a common term until the mid-1980s.
COMMON APPROACHES IN APPLYING ACTIVITY-BASED SYSTEMS
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