Goals and objectives
Activity Based Costing/Management (ABC/M) is a tool that helps to explore opportunities for improving profitability of a company. Unlike traditional cost analysis approaches, ABC/M provides more accurate cost information for each activity, client and product. Using activity-based approaches can help to overcome the following business challenges:
Deloitte CIS offers a full range of services for developing comprehensive ABC/M-based solutions for profitability management, including methodological framework development and a specialized information system implementation.
We are also glad to offer our experience in developing cost management methodologies and models for companies in all industries, including banking, telecommunications, and oil and gas.
We help our clients with the processes of optimizing cost management, analyzing profitability and forming reports for regulatory authorities (separate accounting for each type of business activity and regulated service).
Our professionals implement methodologies and models worked out for use in industrial information systems such as SAP PCM, Hyperion, SAS, and ABM. They provide the support required and help to establish connections between ABC models and client’s accounting systems.
Depending on a company’s business and its previous levels of financial/management accounting and planning functions, a project can include separate АВС/M components or involve development and implementation of an integrated solution. Deloitte CIS consultants are experienced in developing АВС/M systems at all levels, from performing a diagnostics of the existing system and developing the activity-based costing concept to supporting the implementation of automated solutions for transaction accounting, data processing and reporting.
We assist our clients in forming a management reporting package that contains process-related performance indicators based on an ABC/M model. We help our clients to integrate ABC/M system into their existing practices of resource-intensive process management, allowing the company to use the ABC/M system as both a reporting tool and a business management tool.
Project result is an integrated cost and profitability management system based upon ABC/M model which consists of the following components: