"Products or services do not generate costs, they require activities that add value and add costs" (1) "costs are effects and consumption is the cause; therefore, managing costs is managing
Justified consumption ”(2)
abc-costing-costs-with-innovations-in-service-processes-products-1Processes vs functions
Process model
It is a fact that activities consume resources, just as products consume activities
Fundamental premises
- A service - product is made up of a series of interrelated processes. A process is made up of a series of activities. Activities create products or services for the user. To intervene in costs of products or services, the role of the drivers and causes of activities involved in the product or service. The resource driver measures the amount of resources consumed by the activity.
For example: time, man hours, cpu time, kilometers, Square meters, electricity, no. Of people
Activity: one or more people working, once, on a site, Examples: an analysis of accounts, processing a sample
Other premises
- Activity Booster: A measure of the frequency and intensity of demand required to perform activities by product, service, user. It is used to allocate costs.
For example: number of: interventions
Explorations
Hectares planted
Clients visited
Cost object: any service, product, user, project, unit of work on which they want to identify a traditional cost vs. activity-based costing
Account code
Dept. Of medical records
- wages and salaries 600 benefits contract 350 materials 20 taxes - other 60 depreciation 170
in thousands of bs 1,200
Traditional vs. activity-based costing
Account code
Dept. Accounting
- wages and salaries 600 benefits contract 350 materials 20 taxes - other 60 depreciation 170
in thousands of bs. 1,200
The organization seen as a system
It is a way of thinking, an attitude of seeing the organization
As a set of activities that form a unitary whole
To start a planned, ordered and directed process towards
Identification, analysis and evaluation of results
Philosophy
- Create administrative processes, consultative responsibility and control over all fiscal activities. Establish and coordinate a comprehensive, internal control plan through systematic tests and effective measures. Create interrelation with the other components of the system, which will serve as a guide and referent advisor. financially, fiscally and economically and with which it will develop an effective planning and budgeting system. Have technical capacity for continuous updating and management teaching
goals
- Set standards, design, install, manage and control the processes, technical accounting procedures that allow the hospital to achieve its goals, with maximum performance at the lowest cost. Specify a work methodology that allows cost studies, demand and revenue forecasts., financing and budgets. Measure progress against approved budgets. Report and interpret results. Measure and evaluate the validity of financial objectives. Establish coordination between the department itself and all the institution's processes and resources.
