About this paper
Activity-based costing more accurately determines the actual costs of production and related services. The relatively higher accuracy and greater visibility achieved by ABC has helped organizations in service and manufacturing industries better understand and manage their indirect costs than was possible with traditional accounting methods. However, after proven success, ABC has recently come under fire. Robert Kaplan and others are promoting a new, time-driven methodology to presumably get strategic information faster and with less maintenance. Is this approach the panacea for reducing the efforts to calculate costs? This white paper takes an objective look at several questions and brings some new perspective to an issue that has been generating a lot of buzz but also involves a few misconceptions.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 70,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®.