ABC cost analysis
ABC is an activity based cost calculation method. It ensures cost allocation and analysis by product groups, clients, suppliers, and employees according to the activities performed.
Effective tool for cost optimization decision making.
Benefits
- More accurate allocation of indirect costs;
- More accurate prime cost calculation;
- Enhanced possibilities to analyze efficiency of goods and services;
- Possibilities to analyze costs not only by products and services, but also by other items such as customers, employees, regions;
- Helps make decisions about price policy, process optimization or replacement with external services;
- Helps make decisions about business lines;
- Complete information about costs provides control over income.