Activity Based Cost Management

Activity Based Cost Management (ABCM) helps you to analyze and evaluate your business activities through activity-based costing and value chain analysis. It aligns your resources and activities to products and services by incorporating indirect costs into direct production activities

Why should you consider activity based cost management?

• ABCM is an effective way to analyze the cost of an activity in the business viz a viz the value added by that activity.
• It can lead to the economic efficiency of operations and improvements in the strategic decision-making process of a company.
• It can be an effective tool for making pricing decisions.
• ABCM focuses more on the value-generating activities hence it can lead to enhanced customer experience and increased profitability in the long run.

Our methodology

Our methodology is simple and easy to implement. It involves:
• Identifying and analysing the company’s significant business activities and allocating cost drivers for each activity.
• Evaluating the cost of each activity and conducting value-chain analysis to understand the value added by that particular activity.
• Identifying opportunities and implementing processes that can improve the company’s operations and strategies

How can we help you?

ABCM is the key focus area of the cost practice at Cost Intelligence. We assist you to determine the cost of activities as well as the cost of output generated by those activities in your organisation.
We help you to determine the profitability of every business aspect so that you can enhance your strengths and improve your weaknesses