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| Topic: |
Business
|
| Number of pages / Number of words: |
4 / 905 |
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Non-value added activities are wasteful, and add extra costs that the consumer is not ready to pay for. Activity-based costing enables an organization to see the actual dollar amount against the certain activities, and finds ways in order to reduce the costs or dispose of the activity as a whole. The Business Process Improvement describes the techniques of activity-based costing as, "capturing the current cost of performing an activity, targeting high cost activities, providing a context for establishing and measuring performance measures, providing a link between activity modeling and economic analysis, and forecasting financial baselines...
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Activity-based costing enables an organization to see the actual dollar amount against the certain activities, and finds ways in order to reduce the costs or dispose of the activity as a whole. The Business Process Improvement describes the techniques of activity-based costing as, "capturing the current cost of performing an activity, targeting high cost activities, providing a context for establishing and measuring performance measures, providing a link between activity modeling and economic analysis, and forecasting financial baselines...
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