KNOW YOUR REAL COSTS THEN PRICE & BUDGET ACCORDINGLY
Get all the benefits of activity based costing profitability analysis and output budgeting in this simple easy to use system.
What is ABC Focus?
Products services customers etc consume Activities that use Resources which incur Costs. Planning to achieve satisfactory margins and satisfied customers requires a good understanding of the underlying costs. A realistic estimate of the cost of products, services, customers and unused capacity is vital to successful business performance. ABC Focus software is a dynamic implementation of activity based costing used to cost products, services or customers. It includes ground-breaking tools for viewing costs and analyzing activities to see if your efficiencies are within expected range and to establish what needs to be changed to improve your future financial performance. It delivers professional costing and intelligence.
It is a tool which makes activity based costing concepts simple to understand and use. It is a very attractive package because its flexible costing model, consolidated reporting and a very competitive pricing regime make it suitable for large and small business in virtually any industry.
ABC Focus costs products manufactured, good bought in and sold, services provided, customers, processes, markets; in fact any aspect of the business or organization.
It analyses both direct and indirect costs and guides you through the costing and margin evaluation process. Costs are assigned to products based on their usage of materials, expenses, facilities and people. Direct costs include direct labour, materials and expenses and these are assigned directly to the products and services, or cost objects, which consume them. Indirect costs (sometimes called “overheads”) include service-related costs such as administration, computer and personnel department, customer related costs such as the sales department, maintenance and deliveries, etc. The program refers to these activities as activity cost pools. In smaller organisations one or two people may carry out the activities; in large organisations there may be several departments or divisions that are responsible for services. Proper costing and cost management requires that the cost pools or overheads be allocated in a meaningful way to the products or services (cost objects) of the organisation.
By using ABC Focus an organisation will have a better appreciation of its costs and activities. The program acts as a guide through the analysis process and assists with the management of costs and activities. It will identify value-adding (and value-destroying) activities and products and aids with cost management and control.
ABC Focus also provides a structured approach to re-engineering the activities carried out in the business: resource consumption should be minimized while outputs are maximized.
Activity based costing budgets
The conventional approach to budgeting increments current amounts. For variable costs where there is a clear connection between production and sales volume this approach is feasible. However it doesn’t work well for allocating cost of vital support activities to the end product. This is where costing the activities that makeup the product/service and budgeting based on the cost of activities is a better approach.
Top reasons for using ABC Focus
Know your costs
Determine total costs (direct and indirect) for products, services, processes, activities and unused capacity
Identify expensive activities
Examine contributors to costs and draw attention to inefficiencies so managers can allocate resources to where they are most beneficial.
Know your most profitable and least profitable products and customers.
Audit trails and integrity checks for data entry are built-in
Composite objects can be created from the cost objects in a model
Reporting is extensive
Who needs this software?
Products services customers etc consume Activities that use Resources which incur Costs. Any entity involved in the sale of goods or services in a price sensitive market benefits from assurance that their prices reflect ALL their costs. Activity based costing methodology provides a more accurate basis for pricing and activity based future planning including budgets and forecasts. If the following apply to your business this software provides a great solution
- Are the overhead costs of your business a sizable portion of total operating costs?
- Would you gain a competitive advantage from product, service, process and customer profitability analysis?
- Would Activity based budgeting improve your budget quality
What ABC Focus can help you with:
- Useful for obtaining costing information
- Answers the question – what do things cost. Once the cost has been determined the software can be used to help focus the entity on implementing steps to reduce costs where practical and do the activities in a more practical way
- It is based around the activities of an organization: “The activities an organization does determines its nature”
- A business does what it does because of the activities that it does. Those activities consume resources. ABC Focus helps to cost the activities and hence cost the output of the organization
- The outputs can be products, services, customers
- ABC Focus allows the user to get a good approximation of the total real costs of products, services and unused capacity
- ABC Focus can include capital costs
- ABC Focus can provide all the benefits of output based budgeting
- Can be used to monitor costs every month and compare costs month to month
- Can cost processes
Which edition do I need?
ABC Focus is available in either Standard or Gold editions. Which edition best suits your needs can be established by matching the software features with your requirements .
How much will it cost?