The 123s of ABC in SAP

GLOSSARY

ABAP: The programming language used in the SAP software products.

ABB: See Activity-Based Budgeting.

ABC: See Activity-Based Costing.

ABM: See Activity-Based Management.

Activity: See business process.

Activity account: A master data object within the Oros Analytics software application to represent an activity. The activity account is the receiver/sender for assignments.

Activity analysis: The process of identifying the activities performed within an organization, the inputs to the activities, the consumers of the activities, and the metric related to the activities for either benchmarking or allocation tracing.

Activity-Based Costing (ABC): 1. The method of measuring the cost and performance of activities and cost objects. Activity-Based Costing assigns costs to business processes (also called activities) based on their use of resources. The costs incurred by business processes are assigned to cost objects (i.e., products, services, customers, orders, etc.) based on their utilization of these processes. Activity-Based Costing recognizes the causal relationship between cost drivers and business processes. 2. The system component module of the SAP Controlling module that supports integrated ABC using SAPR/3.

Activity-Based Budgeting (ABB): The method of utilizing process output measures and their relationships with the cost of the process as a means for determining the budget expenses of the process.

Activity-Based Management (ABM): A discipline that focuses on the ...