Activity-Based: Costing, Management and Budgeting

摘要: ACTIVITY-BASED COSTING The City of Indianapolis has held the line on taxes and general efficiencies strengthen its competitive position regionally, nationally in global marketplace. Unlike other municipalities, embarked an aggressive performance management program. Several components program, initiated a short time frame, are being deployed to all employees through comprehensive training effort. combination facets this discipline is commonly referred as "strategic tools initiative." These innovative tools, described more detail below, follows: * Activity-Based Costing Management Performance Measures Activity-Based/ Budgeting Reporting Performance-Based Compensation Also combined with these effective use citizen surveys gauge public's perception about amount quality service delivery. Opportunities for input offered several times each year. results distributed throughout departments developing new--or revamping ongoing--projects or processes that address public needs: city encourages individual projects, which support overall division. An example would be neighborhood meeting at various stages road improvement project. (ABC), common private industry, recently crossed over into government sector, federal state local levels; historically knew what direct costs were organizational level, but not how much it cost perform particular activity, Full estimates determined by typical hod including indirect overhead expenses using multiplier labor costs. This method guessestimating programs services made difficult believe them, realized following Accurate information provide Measuring productivity delivery efficiency tool helps break down business core activities, Each activity becomes focal point, discrete operating unit subject analysis potential redesign, can done phase process well total. provides technique control assigns -- both products (activities), based if consumption resources, In words, gathers associated generating output you understand details circumstances drive cost. When ABC project was engaged, we anticipated benefits: Improved Significantly improved savings Delivered dollar's worth dollar investment Activity give data contracting verses in-house scenarios. Public forces within have successfully competed street maintenance, sewer solid waste collection mowing contracts. few examples where competition deployed. Another benefit derived from ability benchmark make adjustments towards efficiency. used agencies, cities, large extent, performance. To truly wring out inefficiencies organization, benchmarking, analyzing reporting become continual activities managers, those individuals work teams closest product/project development. For agencies generate revenue rendered, there attempt establish true internal performing recoup close 100% properly priced user fees. …