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Activity Based Costing

Determining the viability of a given project based on what it will cost is an essential task for any business or organization. Many organizations, however, find themselves making less money than expected or spending more money than anticipated, despite careful budgeting. This discrepancy is not due to faulty calculations, but rather to inexact accounting methods.

Activity-based costing (ABC) is a new theory of accounting that can have profound effects on the efficiency a given company. Activity-based costing is designed to remove as much guesswork as possible from the process of assigning a value to a project or service. ABC not only accounts for the physical supplies needed for a given activity, but also provides a clearer picture of overhead costs. Such costs can often be overlooked or underrepresented in traditional accounting schemes.

The exactitude of activity-based costing allows managers and executives to make more prudent decisions. Precise costing numbers enable the creation of truly cost-effective strategies. Organizations are able to implement activity-based costing techniques through the use of specially designed software packages.

Here at Enterprise Solutions, our services are geared toward helping you to construct an accurate costing strategy through the use of powerful software. Through applications such as QViS Professional, you can create a much more detailed survey of the costs accrued by your company. We'll provide you with a QViS package you can use to create a system that truly reflects the way your company functions.

Activity Based Costing

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