ABC is a management process that examines how program activities consume resources and produce outputs.
In ABC, work processes are broken down into activities so that the cost and performance effectiveness of the activities and processes can be measured.
ABC diagrams and analyzes work processes , functions, and activities
ABC Applies actual, full costs of operations to agency activities
ABC applications identify what work is done; how much time it takes; what resources (inputs) are consumed; and what output is achieved
ABC techniques capture the cost data necessary to answer the following:
Are agency operations:
What are agency/program:
- cost effective?
- critical to overall mission?
- making best use of people and technologies?
Is the agency:
- cost drivers?
- time drivers?
- high value activities?
- low value activities?
- saving money?
- spending money wisely per (unit of output)?
- productive per accepted business standards?