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Activity Accounting
The activity accounting
feature makes integrated activity accounting a fundamental part of
your regular reporting and management process. Activity Accounting
allows you to use ABC to charge cost objects with an activity cost
and credits the cost centres performing the activities, based on the
actual cost driver occurrences. This makes it possible to generate
activity-based profit & loss statements, for each cost centre.
Traditional resource cost reports encourage manages to make resource
focused decisions - Eg. "How can I cut overtime or reduce travel
costs?" Activity Accounting shifts the focus to what is actually
being done; the activities performed and outputs achieved. Comparing
activity value added to the cost of resources available to each cost
centre makes it easy to understand how you can improve resource
allocation, based on real output workloads. Activity Accounting
helps you generate periodic (i.e. monthly, quarterly etc) budget
versus actual cost and management information.
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