INTRODUCTORY INFORMATION: Basic Terms and Concepts

What is Activity Based Costing (ABC)?

  • ABC diagrams and analyzes work processes , functions, and activities
    •  ABC Applies actual, full costs of operations to agency activities
        
  • ABC applications identify what work is done; how much time it takes; what resources (inputs) are consumed; and what output is achieved
      
  • ABC techniques capture the cost data necessary to answer:

Are agency operations:

  • cost effective?

  • timely?

  • critical to overall mission?

  • making best use of people and technologies?

What are agency/program:

  • cost drivers?

  • time drivers?

  • high value activities?

  • low value activities?

  

Is the agency:

  • saving money?

  • spending money wisely per (unit of output)?

  • productive per accepted business standards?

Back | Continue
  

Home  |  Feedback  |  Acceptable Use Policy  |  Disclaimer  |  Privacy Statement  |   Site Map  | Text Only

Web Site Designed by:
Online Learning Team
DOI University, National Business Center

This site is best viewed in 1024x768 resolution, Microsoft Internet Explorer 5.01 or later.