ABC in an Advertising Firm?




Activity Based Costing
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Tanya Ella
Student (University), Philippines

ABC in an Advertising Firm?

How can ABC be applied in an advertising firm where activities vary per project, depending on the client, its marketing campaign, its objectives, and their budget?
 

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0
Joseph Rivera
Manager, Philippines
 

ABC in Marketing

I agree that some activities may vary but not all.
That is why you have to have a lot of activities that you can tick off whenever they would be needed for a project.
We have our own marketing activities that do not apply to every project, the trick is just to identify those that do apply and those that do not.
An activity analysis is the best way to do this.

 
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Amit Kumar Sharma
Manager, India
 

Reply to Tanya Ella

ABC has to be done again for every new assignment.

 
0
biplab de
Teacher, India
 

Finance

I think ABC has to be done according to assignment.

 
0
ANDRES PENAGOS
Financial Consultant, Colombia
 

Applying ABC

You should analyze if process-activities can be structured as common for all clients but the final product (specific campain) is the one who receives some of the structured activities from the model.

   

More on Activity Based Costing:
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🥈 Limitations ABC monitoring operations
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Comparison Activity Based Costing, Time-Driven-ABC and Lean Accounting
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Organizational Issues when Introducing ABC
Over Recovery / Under Recovery Level
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ABC in the Federal Environment
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