In recent years, ABC has lost ground in the metric wars. But it may be set for a resurgence.
David M. Katz, CFO.com | US
December 31, 2002
A quick note from the ABC frontline... along with what's said in the article, there are other factors that make ABC a more practical option now than it was a few years ago. For one, technology has advanced to the stage where various software solutions can not only deal with the number-crunching required, but also data warehousing applications can provide the information - the "drivers" - required to apportion costs to activities and on to cost objects.
The other interesting technology advance is in integrated software suites, where ABC is being combined with scorecarding and driver-based planning and budgeting to help organizations manage their performance. It turns out that the ABC drivers are very tightly linked to the performance metrics, so it's a good fit.
If you want to join in with more ABC discussions, try The ABC Blog.
Posted by Steve Mainprize | August 15, 2006 12:15 pm© CFO Publishing Corporation 2009. All rights reserved.