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The Importance of Activity-Based Costing/Management to
the Balanced Scorecard |
This article considers how Activity Based Costing and
Management (ABC/M) approaches may complement a balanced
scorecard effort. Attention is paid to the critical
success factors in ensuring that ABC/M adds value to the
balanced scorecard initiative.
In this article, I will discuss how activity - based
costing / management (ABC/M) contributes to the
reliability and the quality of the metrics that populate
the balanced scorecard. I have been involved in over 30
ABC/M implementations and more than 10 balanced
scorecard implementations in Asia over the last five
years. Most of what you read here is based on the
learning that I have gleaned from these implementations.
Firstly, I will outline briefly the concept of ABC/M and
it's implementation. I will then discuss the various
outputs from ABC/M and how they can enhance the balanced
scorecard. pdf |
