Make Better Business Decisions With Activity Based Costing

Activity-based costing (ABC) increases the understanding of overheads and cost drivers, making costly and non-value adding activities more visible, which allows managers to reduce or eliminate them.

ABC assigns overhead and administrative costs to activities that are in direct relationship with a particular overhead cost. Based on these relationships, activity costs are then allocated to products, servicers, suppliers or customers.

This enables companies to identify the true costs of processes and products, therefore improving the budgeting and cost management process, and providing an accurate and reliable outline of costs involved in each activity of a business' operations.


Download Brochure
Improve Decision Making
Activity-based costing gives managers more accurate production costs thereby helping businesses make more informed decisions around production and pricing.
Allocate Overheads More Accurately
Instead of assigning an equal overhead cost to all products, activity-based costing expands the number of cost pools that can be used to analyse overhead costs, making it easier to track indirect costs against products and services.
Eliminate Cost Wastages
Easily identify products of little to no value and remove them from inventory whilst allocating resources to more profitable items.

Tridant's Activity Based Costing App Benefits:

  • Profitability analysis of existing contracts and visibility of cost drivers.
  • Negotiation of new trading relationships and identification of opportunities for cost reduction.
  • Understanding true costs to serve and ordering patterns to renegotiate supplier trading terms.
  • Actual costs are attached to products with a reference to vendor and delivery quantities or pick methods to make decisions about product flow and about automated or manual pick etc.
  • Visibility on cost to serve in prizing and how customer order dynamics influence fulfilment costs.
  • Ability to work with customers to modify buying behaviors such as order frequency and size, remove supply chain costs or negotiate customer contracts.
  • Analytical platform for "what-if" analysis to determine the cost of potential changes.
Free Brochure

Start Reducing Overhead Costs and Maximising Your Business Profits

Copyright © Tridant Pty Ltd.

Privacy Policy