ace on-demand for Activity-Based Costing / Management

 ace on-demand is perfect for developing Activity-Based Costing / Management (ABC/M) models. For more information on Activity-Based Costing / Management  please see below for an extract from the Consortium for Advanced Management-International (CAM-I) presentation on the ABCs of ABM.

The primary advantages of ace on-demand for Activity-Based Costing / Management are:

• Web based allows for instant access - no waiting for preparation of complex environments
• Flexible Modeling – Not limited to any particular methodology
• Can rapidly import Oros models
• Designed to hold and calculate large transaction level data sets
• Allows preparation of all data in Microsoft Excel or Microsoft Access before upload to ace 
• XML upload and download capability allows for maximum use of Excel & Access by users for updates and initial configuration
• Can remotely call functions via XML
• Can export Cognos Transformer compatible flat files
• Includes cube, reports and dash board functionality all from the one web interface. Can integrate with Cognos.
• Easily generate dimensions and measures in cubes using ace's "tags" functionality - no requirement to pre-determine your dimensions before you commence modeling.
• Can include performance graphics in developed cubes
• Sophisticated driver creation – provides very powerful modeling capabilities – useful for model automation
• Demand driven budgeting and planning capability
• Suitable for modeling cost (Activity Based Costing), profitability, military readiness, budgets (Activity Based Planning / Budgeting), corporate performance etc.

 

 The screen shot above demonstrates the ability of ace to calculate and present different types of cost information as well as a range of performance metrics.

Activity-Based Costing

Activity-Based Costing is a methodology to calculate the cost of activities (such as train employees) and cost objects (such as products, services and customers). 

Activity-Based Management

Activity-Based Management is a discipline that focuses on the management of activities as the route to improving organizational performance and value received by its customers.

CAM-I Cross

Benefits of Activity-Based Costing / Management

• Activity-Based Costing / Management Better alternative than traditional methods for cost determination and analysis
• Information for effective decision-making
• Information to continuously improve processes and reduce costs
• A relationship between organizational cost and organizational value
• Methods to measure performance with accountability 

Common Uses of Activity-Based Costing / Management

• Product and Service Costing
• Product and Service Profitability
• Customer Profitability
• Process Improvement
• Cost Estimation
• Performance Measurement
• Pricing Models
• Process Re engineering

 Typical Revelations

• High-volume products/services are overcosted. Low volume products/services are undercosted
• Significant differences in customer profitability
• Opportunities to improve processes
• 25-35% of activities don’t contribute to organizational goals
• 80% of costs are consumed by 20% of the activities.
• 20% of the customers generate 80% of the revenues