You may prefer to use estimated activity costs during the first year of using ABC, because the cost calculation program requires a year's worth of data to calculate accurate costs.
For example, if your counter sales representatives make an average of $15.00 per hour, and entering a sales order takes, on average, ten minutes, this activity costs your company about $2.50 in overhead each time it is performed. You can assign estimated costs to each activity code across all of your branches, or to each individual branch.
Select estimated costs as the display option for the first year for inquiries and reporting, instead of using the calculated costs.
To assign estimated costs to an ABC activity:
From the Events > Activity Based Costing > Maintenance menu, select ABC Code Maintenance to display the ABC Code Maintenance screen.
Note: If prompted, log on to the character-based system.
In the Est Cost field, enter an estimated cost for a selected activity.
Press Esc to save the information and exit the screen.
To assign estimated costs to an ABC activity by branch:
From the Events > Activity Based Costing > Maintenance menu, select ABC Code Maintenance to display the ABC Code Maintenance screen.
Note: If prompted, log on to the character-based system.
In the Est Cost field, enter an estimated cost for a selected activity.
Use the Branch Costs hot key to display the ABC Branch Cost Maintenance screen.
The system populates the header fields with the ABC activity description and the estimated cost from the ABC Code Maintenance screen.
Complete the following fields:
Field | Description |
Br | A number that identifies a branch that uses an estimated cost different from the one on the ABC Code Maintenance screen. |
Estimated Cost | The cost for the selected activity in the designated branch. |
Press Esc to return to the ABC Code Maintenance screen.
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