Activity-Based Costing (ABC) Rapid Prototyping Toolkit (PowerPoint PPTX)

The Activity-Based Costing (ABC) Rapid Prototyping Toolkit allows you to implement an ABC system within your organization in weeks, instead of months or years. It includes a proven framework for ABC rapid prototyping, along with associated tools, templates, and educational resources (listed below).

Many believe ABC can be complex and that an organization needs to determine if the benefits are worth the effort. Many have this perception, but it is a misconception.

With this toolkit, we can implement a permanent repeatable ABC production system in weeks. It accelerates quick learning about ABC, is engaging since the organization is modeled (not a fictitious one), dispels misconceptions that an ABC model must be large and complex (and require employee time sheets), gains buy-in from skeptics, and most importantly identifies what types of uses line managers will leverage the ABC information for insights and decision support. It starts the commitment to use ABC.

The following documents are included:

1. PowerPoint that describes the implementation approach (this is the primary document, which you see above in the partial preview)
2. Sample Statement of Work (SOW) that consultants can propose to clients
3. Word document describing problems associated with ABC and how ABC rapid prototyping is a solution
4. Excel spreadsheet demonstrating activity cost and driver calculations
5. Excel spreadsheet to calculate activity costs (template)
6. Excel spreadsheet for applying activity driver volumes to assign activity costs to cost objects (template)
7. PDF of the chapter on ABC Rapid Prototyping from my book, "Activity-Based Cost Management – An Executive Guide"
8. Word document that provides a compilation of links to articles that I have authored on ABC
9. Video of a seminar/lecture I held on ABC (36 minutes)

Documents 2-9 are included in the secondary ZIP.

The toolkit's iterative remodeling approach ensures each ABC model enhances the system's relevance and reliability. It also addresses misconceptions about ABC's complexity, demonstrating how right-sizing can make the system manageable and effective.