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BI and Cost Accounting

SETTING UP AN ABC SYSTEM USING BI

Activity-based costing (ABC) has been around for 20 years or more but without the help of Business Intelligence (BI), this is an almost impossible goal to achieve. Even with the help from BI, it is still a daunting task. Most organizations start ABC as a project, a learning experience. When the added value of ABC is established, it becomes embedded in day-to-day management processes. There are five phases in an ABC project:

1.  Assemble all sources of cost registration

2.  Validate the consistency of the registrations

3.  Assign the sources in a meaningful way

4.  Express assumptions

5.  Communicate the results and validate them in the field

An in-depth discussion of these source ...

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