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留学生作业写作需求:Activity-Based Costing:An Emerg

Activity-Based Costing An Emerging Foundation for Performance Management
Peter B.B. Turney, PhD
President and Chief Executive Office留学生论文网Cost Technology, Inc.
Activity-based costing has been around since the mid-nineteen eighties. Given its longevity, it’sworthwhile to answer:
! How has ABC evolved over its life cycle?
! What lessons have been learned from the evolution of ABC?
! What can ABC do today that it could not do 20 years ago?
This article answers these questions by examining the evolution of ABC in the context of aproduct life cycle. It summarizes the history of ABC according to the phases of its life cycle,highlights its expanding functionality over time, and details the lessons learned from two decadesof use. It concludes with a description of the current state of ABC as a key input and value adderto performance management systems.It took just a short time for ABC to be recognized as an innovative and potentially valuablecosting methodology; yet it took another 20 years to reach its full potential. ABC emerged inresponse to competitive pressures that exposed inaccuracies in cost accounting. Early uses helpedcompanies view the distortions inherent in cost accounting systems leading to changes in strategy,processes, operations and improved competitive position.Buoyed by early successes, ABC emerged as a powerful profit analysis tool. These successes
stemmed from ABC’s ability to reveal the hidden sources of profitability and embedded cost, andto serve as a catalyst for decisions to improve profitability. Over time ABC adapted to new areassuch as cost-to-serve activities, customer profitability, channel profitability, and the use of ABCoutputs to perform capacity planning and drive predictive modeling. By the late nineties ABC
was used extensively in diverse industry and government sectors.Today, ABC is the emerging foundation of performance management. If you lift up the hood of aperformance management system, you will ABC powering performance measures forscorecards, providing rates for customer profitability analytics, helping devise human resourceplans, modeling sustainability, and supporting budget development and planning.Like most technologies, the value of today’s ABC is the result of many years of development andlearning. In assessing its value for your organization, it is important to understand how it hasevolved and how this evolution has created opportunities to create value. Whether you areconsidering ABC for the first time, or a returning early adopter, it is time to take a fresh look.SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in theUSA and other countries. ® indicates USA registration. Copyright © 2008, SAS Institute Inc. All rights reserved.
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