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Degree of Detail in ABC

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Activity Based Costing
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Simon, Australia

Degree of Detail in ABC

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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0
Enzo, Argentine
 

ABC-Planning

This depends on:
1) For one special sector it is very few probable to summarize the information.. I explain: in one sector in South America it is impossible to work with a lot of dates the one activity or reverse position more activities, few and less dates.
2) It is very interesting to applicate the ABC system when the firm has experience and the possibilities to create competitive advantages.

 
0
jC, Singapore
 

Why ABC?

As a management tool, ABC is useful to certain organizations only. It depends on the type of manage... Sign up

 

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More on Activity Based Costing:
Summary
Discussion Topics
topic Limitations and Advantages of ABC for Budgeting
topic Limitations ABC monitoring operations
topic ABC in an Advertising Firm?
topic The Cost of Non-value-added Activities
topic ABC: reduce non value adding activities?
topic Consequences of ABC Analysis
topic Capacity Minutes and Industry Norms
topic Drivers still Right?
topic ABC Helps Companies Survive Recession
topic Traditional Costing versus Activity Based Costing
topic The Process of Activity Based Costing (ABC) simplified
topic Activity Based Costing (ABC)
topic Conditional Resources in ABC
topic ABC in service companies such as airlines?
topic Overhead Costing - Food Manufacturing
👀Degree of Detail in ABC
topic Activity Based Costing Implementation
topic ABC and Decision making
topic Time-driven ABC (TDABC)
topic Activity Based Management (ABM)
topic Calculating the Most Profitable Way of Manufacturing a Product
topic ABC or TOC? The Differences between Activity Based Costing and the Theory of Constraints
topic Recommended ABC Software
topic Comparison Activity Based Costing, Time-Driven-ABC and Lean Accounting
topic ABC Costing in Make to Order of Repetive Manufacturing
topic Organizational Issues when Introducing ABC
topic Over Recovery / Under Recovery Level
🔥 What is Process Costing?
topic ABC in the Federal Environment
topic An ABC Initiative is Only as Effective as the Software That Supports It
topic What is Job Order Costing?
topic How to Derive Overhead Cost from a P&L?
Special Interest Group

SIG Leader

Do you know a lot about Activity Based Costing? Become our SIG Leader

Knowledge Center

Activity Based Costing
Knowledge Center



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