Activity-Based Costing Proves Worthwhile | AccountingWEB

Activity-Based Costing Proves Worthwhile

A new study reveals how activity-based costing (ABC) can be applied to a single department of a major institution of higher education to manage systems more effectively.

The study was funded by The PricewaterhouseCoopers Endowment for The Business of Government, and is called 'Using Activity-Based Costing to Manage More Effectively.' Authors are Professor Michael H. Granof, Assistant Professor David E. Platt and Assistant Professor Igor Vaysman, all from The University of Texas at Austin.

The report shows how using ABC over traditional accounting systems allocates "overhead" costs to programs and activities in a more reflective way of the factors that influence them.

The case study presents several lessons that are applicable to both governmental and not-for-profit organizations, especially executives in government who quantify performance and financial costs.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.