Activity Based Costing (ABC) systems constitute an essential part of management accounting. Such systems first accumulate overhead costs for each activity in a process chain, and then assign the costs of these activities to the process, products, services or other cost objects which caused that activity. In order to establish a cause-effect relationship between an activity and a cost object, cost drivers are identified for each activity. The systems bring transparency to Operating Costs, as well as processes to allocate cost drivers correctly - thus allowing efficient control. Activity Based Management (ABM) is a further extension of Activity Based Costing which allows profit centre heads / managers to identify any non-value-added cost drivers, and manage them (together with process and monetary benefits) effectively.
Contauro helps the client organization to implement a system and operating model rapidly and economically. This creates a focus on the essential part of the value chain, and allows the identification and elimination of cost drivers, so as to achieve "quick wins".
