Activity Based Costing Implementation
How can a company implement activity based costing?
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ANDRES PENAGOS Financial Consultant, Colombia
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Implementation Method ABC
Rose, first of all you have to analyze the company you are implementing in. Get info and details of products and services, information structure, processes, cost objectives, needs of information, solutions wanted, organizational structure. Then you begin to defining the model, processes, activities, operations, products.
The next step you have to analyze and structure the information sources, which will provide info to ABC model (most critical step in the hole process).
Next step set up the model in some ABC software, set up the software requirements, run process, analyzing results.
It seems easy but it is complex in the beginning.
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