Cost per Activity Approach 

Unlike traditional systems, ABC Costing treats all fixed and direct costs as if they were variable and does not make distributions based on production volumes, cost percentages, apportionment, weighted averages, or other distribution criteria.

Benefits

• Detailed monitoring of the flow of activities
• Accuracy in cost allocation
• Maintains an objective of continuous improvement
• Assign costs to Materials and product
• Classification r Product, Lot, Line by Company
• Identify bottleneck that impacts cost
• Identify Repetitive Activities and Non-repetitive and impact
• Determination Standard Unit Costs

Approach Cost for Brackets Benefits

This costing system is more focused on Supply Chain, Logistics, Retail processes, due to the constant change in demand, due to various internal, external or local global factors, this considers product mixes, order sizes, consolidations, efficiencies, consider elimination of legal risks for breaches in SLA.

Benefits

• Things Change, gradual misalignments and on-demand behavior
• Customer Demand, Sales Programs promotions offers, generate abrupt changes, over commits, generated by marketing departments
• Involuntary consequences happen, raw materials, competitor actions
• Demanding work requirement, personnel events, demands for changes in Finance, IT, Logistics, Sales, Supply Chain that requires numerous resources
• Necessary Risk Management, Excessive failures require price changes
• Increase in deliveries with small vehicles to increase efficiency
• Identification of requirement behavior of clients to achieve high level
• Implementations of improvements without disruptions, key to maintain costs without impact to the client
• Mitigate Legal Risks, important to create efficient structures and programs