Activity based costing

The module collects information on costs in the form of cross-sections of processes at the enterprise. The solution enables managing source data necessary to calculate costs based on ABC.

The module calculates the actual business profitability in the area of production and sales of products and services.

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Activity based costing
Activity based costing

Calculation using ABC is based on the analysis of activities, that is, an intentional and structured work which is conducive to costs arising at the firm. Resources consumed in the activities and pertaining to various costs are analysed. In calculations, resource and activity cost carriers are employed. Data showing the degree of resource engagement in the activities and supply of products and services are available.

Measurement of selected values
Measurement of selected values

The module enables measuring values named by the user which include:

  • effectiveness of processes and resources
  • actual profitability of products, clients, distribution channels and markets
  • costs of untapped potential of enterprise’s actions and resources
  • the most and the least profitable products, clients, distribution channels and markets servicing costs of new clients, channels and markets
  • costs of processes and actions undertaken at the enterprise

Selected module functions

  • calculating the profitability of actions
  • providing information necessary to manage actions
  • providing information on cause-and-effect links of actions and costs
  • managing enterprise profitability
  • calculating costs planned
  • determining the prices of products launched on the market
  • calculating costs of servicing new clients, distribution channels and markets
  • managing non-value adding actions
  • defining the costs of surplus resources

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