Degree of Detail in ABC


 
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Degree of Detail in ABC
Simon
When planning to build an ABC model it is essential to first make the decision what level of detail ABC is to be captured. This depends on what questions are to be answered:
1. Strategic (about 100-150 Activities). This is the most common application and is used to deliver customer and product profitability and visibility where the costs are incurred.
2. Operational (500+ Activities). At this level, individual tasks are captured and these models are commonly used for process improvement.
 

 
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Enzo
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jC
As a management tool, ABC is useful to certain org...
 

 







 

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