ABC Advanced

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ABC Advanced

• Maria Goldkuhl

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Agenda

• Attributes in ABC
• Components
• Time driven ABC within Prodacapo
• Using Cost driver rates
• QuestionsPS. Only questions that I can answer!

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Attributes in ABC

• Group by
• Weight
• Selection
• Combination with object fields,
• other CD values
• Top traced

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Using Product Attributes

• What is a product attribute?
• A characteristic of the product or service, for
  example size, colour, complexity or approval.
• Why using attributes?
• group special kind of products
• select specific products that will receive cost
  from cost drivers
• weight specific products
• Select target products within cascade methods

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Using Product Attributes

• Define the product attribute in the Setup window.
• Highlight the product to which you want to attach
  attributes.
• Click the Attach button and select attribute.

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Example- Product Attributes
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Components

• Important settings
• Structure
• Analysis

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Setup
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Produced/Capacity
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Result
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How is the cost built up?
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Drill down
Note, When you drill down you will see the cost
for one Brew, not how much is included in Castle
lager where we started.
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Time Driven ABC

• Setup base data
• Trace methods on resource
• Compare actual capacity with used capacity

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Setup Settings

• 3 different options
• Set activity volume cost driver volumeAll
  operational activities will have the activity
  volume updated
• Set activity attribute cost driver volumeAll
  activities with an attribute with attribute
  category Id CDU will have an updated attribute
  value
• Set Activity volume costdriver volume
  attributeAll activities with an attribute
  belonging to category Id CDU will have teh
  activity volume updated.

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Resource trace method
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Activity volume updated during calculation
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Updated values
Activity volume
Driver values
Organisation cost
Work time
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Free Capacity?
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Standard Rate Costing
Calculate standard cost
Activities/ Processes
Cost
Resources
Cost Drivers
Planned cost
Standard cost per occurrence
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Standard Rate Costing Monitor last months
actual performance
Standard rate based on budget / plan
5 Register Purchase Order
Activity based standard costing
5 Check Delivery Date
25/purchase order line
10 Receive Material
5 Pay Suppliers
Cost centre Purchasing department
Result Improved resource allocation/ Capacity
management
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Budget model
CD60
Actual model
AY61
RT20 (VAY20)
Actual Activity cost
Standard Activity cost Earn value
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Difference held in a new cost driver
CDs that have tariff CD rates can have activities
attached to them from many different cost centres
CD60 imported new CD rate tariff. These CDs
(all types) charge at tariff rate
CDs with tariff rates have unique attribute
(linked to an attribute category with id SRC

• CDs with no tariff attribute behave as normal.
  These can be
• CDs to patients treatments
• CDs internally transferring costs and
• CDs transferring costs to other cost centres

• Total difference between cost tariff charging
  in the cost centre is allocated to a new,
  automatically created cost driver with suffix
  _SR .
• The new cost driver should be a copy of the
  original cost driver, both regarding the method
  and the cost driver values with the following
  exceptions
• The new cost driver should be of cost type
  Direct Cost not account traced
• Should not be linked to activities as the
  original cost driver

• The handling of the new cost drivers should be a
  part of the calculation and be performed after
  that CD20 have been calculated.
• The default procedure when creating the new cost
  driver is
• For all cost drivers that have the attribute and
  with an attribute value of 1 (default)
• Delete all drivers with suffix _SR
• Create a copy of the cost driver and trace it to
  the same cost objects.
• For all cost drivers that have the attribute and
  with an attribute value of 0
• Create a copy of the cost driver if not exist
  according to above
• If cost driver already exist, leave everything
  unchanged