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White Paper

Using Analytics to Turbocharge Activity-Based Costing Systems

About this paper

Translating expenses into calculated costs using a cost-tracing approach is foundational to activity-based costing (ABC). Yet even when an organization adheres to strict accounting practices and principles, there can be problems with this method. For example, how appropriate are the selected drivers, and how accurately do they model costs proportionately to reflect an organization's actual consumption of expenses? This white paper describes this problem and illustrates how and why correlation analysis resolves it.

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SAS is the leader in analytics. Through innovative analytics, business intelligence and data management software and services, SAS helps customers at more than 80,000 sites make better decisions faster. Since 1976, SAS has been giving customers around the world THE POWER TO KNOW®.

 

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