Introduction to Activity Based Costing (ABC) Internet ABC Online Presentation
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1 Introduction to Activity Based Costing (ABC) University of Pittsburgh Pittsburgh, PA Introduction to Activity Based Costing (ABC) Internet ABC Online Presentation This page and this presentation are created by Narcyz Roztocki. Click here to start Table of Contents Activity Based Costing (ABC) A typical situation in a small manufacturing firm Common beliefs Reality Why is a new cost management system needed? Why is the knowledge of the true cost of a product so important? (1 of 4)1/28/2005 5:20:20 AM
2 Introduction to Activity Based Costing (ABC) Why is the knowledge of the true cost of a product so important? (cont) Major factors for determination of market price Ways to determine object cost Total cost for a cost object Traditional Cost Accounting (TCA) TCA in a company TCA in a company (cont) Activity Based Costing (ABC) ABC Basic Premise When to use ABC ABC Steps ABC Illustration 1. Identify activities ABC Illustration 2. Determine activity cost ABC Illustration 3. Determine cost drivers ABC Illustration 4. Activity data ABC Illustration 5. Product cost calculation Product cost TCA vs. ABC Summary of ABC approach (2 of 4)1/28/2005 5:20:20 AM
3 Introduction to Activity Based Costing (ABC) If you want to improve the operation or quality of your business, or just learn more about ABC, Economic Value Added and Decision-Making, then participate in our Internet-Based Surveys: Decision-Making and Decision Support Systems (DSS): Internet Based Survey ABC and Economic Value Added: Internet-Based Survey An analysis will be posted after completion. We anticipate valuable results. Thanks for your time. We would appreciate your feedback regarding this presentation. Please fill out our questionnaire. Thanks! Questionnaire Additions, ideas, questions, comments, and criticisms are WELCOME! Activity-Based Costing (ABC) Economic Value Added (EVA) Internet Website Guide: ABC and EVA Internet Website Guide On the Development of a Combined Activity-Based Costing (ABC) and Economic Value Added (EVA) System for Small Businesses: ABC-and-EVA-Based System Back to the Main Page: Home (3 of 4)1/28/2005 5:20:20 AM
4 Introduction to Activity Based Costing (ABC) This page last updated 28 May Copyright Narcyz Roztocki. All rights reserved. (4 of 4)1/28/2005 5:20:20 AM
5 Activity Based Costing (ABC) Slide 1 of :20:36 AM
6 A typical situation in a small manufacturing firm Slide 2 of :20:41 AM
7 Common beliefs Slide 3 of :20:45 AM
8 Reality Slide 4 of :20:50 AM
9 Why is a new cost management system needed? Slide 5 of :20:54 AM
10 Why is the knowledge of the true cost of a product so important? Slide 6 of :20:59 AM
11 Why is the knowledge of the true cost of a product so important? (cont) Slide 7 of :21:03 AM
12 Major factors for determination of market price Slide 8 of :21:08 AM
13 Ways to determine object cost Slide 9 of :21:12 AM
14 Total cost for a cost object Slide 10 of :21:16 AM
15 Traditional Cost Accounting (TCA) Slide 11 of :21:19 AM
16 TCA in a company Slide 12 of :21:23 AM
17 TCA in a company (cont) Slide 13 of :21:26 AM
18 Activity Based Costing (ABC) Slide 14 of :21:29 AM
19 ABC Basic Premise Slide 15 of :21:33 AM
20 When to use ABC Slide 16 of :21:36 AM
21 ABC Steps Slide 17 of :21:40 AM
22 ABC Illustration Slide 18 of :21:44 AM
23 ABC Illustration Slide 19 of :21:47 AM
24 ABC Illustration Slide 20 of :21:50 AM
25 ABC Illustration Slide 21 of :21:54 AM
26 ABC Illustration Slide 22 of :21:57 AM
27 Product cost TCA vs. ABC Slide 23 of :22:00 AM
28 Summary of ABC approach Slide 24 of :22:03 AM
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