Activity Based Costing (ABC): Drucker Tells Why

Peter Drucker for a long time has supported Activity Based Costing because it gives superior information about the costs of an organization thus enabling managers to make better decisions.

In the book:

Activity Accounting: Activity Based Costing Approach

Brimson identifies benefits from Activity Accounting:

• Providing insight into the fastest-growing and least visible element of cost-overhead
• Improving profitability by monitoring total life-cycle cost and performance
• Improving the effectiveness of budgeting by identifying the cost/performance relationship of different service levels
• Encouraging continuous improvement and total quality control because planning and control are directed at process level
• Linking corporate strategy to operational decision making
• Facilitating elimination of waste by providing visibility of non-value added activities
• Improving make/buy, estimating, and pricing decisions that are based on product cost that mirrors the manufacturing process

To achieve your organization's Activity Based Management (ABM) goals, contact our experienced value creators who transfer Activity Based Management (ABM) knowledge to your organization. We look forward to helping you achieve your Activity Based Management (ABM) goals.

Call John Antos at 972-980-7407 to find out how Activity Based Costing can help you reach your goals and give your peace of mind