7), Kaplan and Anderson pointed out the major implementing problems of the Conventional Activity-based Costing
(CABC) as follows:
(ABC) has been slowly gaining traction among hospital financial managers, yet has not been widely adopted as a method to improve the value cycle.
The possible way of the simplification of the system is the application of time-driven activity-based costing
ACTION POINT: Activity-based costing
is a totally different way of thinking, especially for accountants whose financial reports do not require activity costs.
Time-Driven Activity-Based Costing
is an innovative model available to organizations interested in having a clearer grasp of the costs and profits involved in delivering products and services to their clients.
This case involves designing and analyzing an activity-based costing
system for a laboratory.
For those programs and services that the agency knows it must provide and produce, activity-based costing
and business process reengineering are used to move forward.
Furthermore, it claims to offer a superior offering to those currently underway at ERP companies because its applications suite is agnostic to the ERP backbone - Lawson, PeopleSoft, SAP and Oracle have tried to integrate the activity-based costing
modules with each respective back-end platform.
Since batch-level costs are one of the most significant levels within the activity-based costing
hierarchy, cost designers must consider further refining assumptions inherent in the application of batch costs to cost objects.
With activity-based costing
, you get a management tool that gives you the cost and profitability information you need to truly understand your businessand with that kind of information, you get the results you need to be competitive in today's tough global market.
provides the most accurate response.
From roots at Tektronix and PSU, activity-based costing
penetrates manufacturing around the world, and now services and government, too.