Five steps to ABC system design

Article Abstract:

Activity-based costing (ABC) offers more accurate estimations of product costs than conventional costs systems. ABC systems use multiple cost drivers to trace activities in the production of products that consume resources. When designing an ABC system, five design steps are necessary: aggregating activities; reporting the costs of activities; identifying activity centers; and selecting cost drivers, initially first- and subsequently second-stage cost drivers. The three factors that determine whether a cost driver is appropriate are the diversity of products, the relative costs of aggregated activities, and the diversity of batch size.

Methods, Cost accounting

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Design - pervades the whole of the manager's world

Article Abstract:

Today's managers have to be aware that good product design is an essential ingredient in profit making. The British government is promoting design and quality as important to the economy. Manufacturers, retailers and service industries are all involved in this effort. Design makes important contributions to business: a care and concern for things, special methodology, and a set of special skills. Design is not to be confused with innovation; design is the planning of man made objects while innovation is a new and creative approach to products and processes.

Beliefs, opinions and attitudes, Executives

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Good design is at the heart of strong businesses

Article Abstract:

Well designed products are essential to the success of a company. However, this link has not always been perceived clearly by the business world. The government-sponsored Design Council exists to promote better product quality and offers financial and consulting aid to companies wanting to improve their products.

Design and construction, Information services, Products, Design services, Engineering design, Great Britain, United Kingdom. Design Council, Barlow, William (English bishop), Grant, Keith

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