Activity Based Costing is a special costing method that allows businesses to accurately calculate cost associated with products or services. This method identifies activities involved in producing your products or services and assigns indirect and direct costs to each. Traditionally, costing has involved applying a standard percentage for indirect costs. This poses problems because indirect costs are not shared equally among your products and services. Due to these inaccuracies in traditional cost accounting methods, you may have one product essentially subsidizing the other through indirect costs.
We have developed an Activity Based Costing (ABC) system, called eKcosting™, that generates accurate information on relevant cost, revenue, and profit for any business or industry. eKcosting™ is developed in C# and saves all information in XML format. It is also tightly integrated with Excel, to allow uploading of data from Excel to complete the initial iteration of a modeling solution from existing spreadsheet data.
eKcosting™ provides various Explanation and Time-saving functions. The Look-back function explains the details of cost contributions and the straightforward reporting to Excel provide the reporting flexibility that is needed.
eKcosting™ is an intuitive, easy to use system that minimizes time and effort needed to construct the initial model and populate it with current data, and dramatically reduces the time and effort needed to update the model for subsequent model period updates.
With Activity Based Costing and eKcosting, your business can get a firm understanding of how you are spending your money. It will allow you to create more accurate estimates, and maintain tight control of your costs. You will be better prepared to find and eliminate unnecessary cost, and assign resources to more profitable products and services.