Activity Based Management for Dell
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Department cost allocations (Person 4)--Can we get a current department cost allocations for Dell? How will ABM impact that?
2. Basic cost concepts (Person 4)
3. Resource usage (Person 4) -- What is typical required with ABM? How will ABM change Dell's resource usage?
4. Capital investment decisions (Person 4) -- Typically required with ABM? Anything required for Dell and ABM?
5. Timing (Person 4) -- Is there a best timing for ABM implementation?
6. Other considerations (Person 4) -- Anything else that must be considered with ABM and Dell?
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1. Department cost allocations (Person 4)--Can we get a current department cost allocations for Dell? How will ABM impact that?
We can get current department cost allocations at Dell using Activity Based Costing (ABC). ABC is a systematic, cause & effect method of assigning the cost of activities to products, services, customers or any cost object. ABC is based on the principle that "products consume activities." ABC systems trace costs using multiple allocation methods in a Bill of Activity format. ABC allocation methods are frequently called cost drivers. We can get a current department cost allocation by delineating each and every activity and allocating a cost to it. For example at Dell in ...
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