Activity-Based Costing: Making It Work for Small and Mid-Sized Companies (Wiley Cost Management Series) (Paperback)

by Douglas T. Hicks (Author) "The basic concepts and mechanics of activity-based costing (ABC) have been around for decades..." (more)
Key Phrases: single activity center, repack sales, multiyear costing, Road Shows, Acme Distributors, Ace Manufacturing (more...)

Editorial Reviews

Product Description
Practical, easy-to-follow ABC guidelines for small and mid-sized businesses

Incorporating activity-based costing (ABC) concepts into your business without relying on the usual complex ABC jargon can be a daunting task–even for the most experienced accountant. In Activity-Based Costing: Making It Work for Small and Mid-Sized Companies, professional accountant Douglas Hicks shows you how to sharpen your competitive edge while bringing you the "total package" of cost information–not just the computational elements. Using an approach developed while solving problems for small and mid-sized companies, Hicks has created a reader-friendly, comprehensive narrative covering every aspect of the ABC industry, including step-by-step instructions for building a cost accumulation and distribution model for any size business. With examples taken from Fortune 1000 companies, readers will find a wealth of information on ABC features, including:

• The logic behind ABC and its cost flow-down steps
• How to get the maximum benefits from ABC for your small or mid-sized business
• Case studies on emerging cost flow-down structures
• The most appropriate ways to change to multiple costing rates and bases
• Using ABC to perform "what if" analyses
• The danger of measuring costs using generally accepted accounting principles
• Applying decision costing and long-term contracts to your business

If your company is looking to dramatically improve its current cost information systems, this book is a must-read. You can have that crucial competitive edge. Activity-Based Costing: Making It Work for Small and Mid-Sized Companies will show you how.

From the Publisher
Provides a much-needed alternative to the ``big guys'' approach to activity-based costing (ABC). Divided into 3 sections, it begins by addressing some of the general issues regarding ABC at small and mid-sized companies, featuring key concepts needed to implement ABC. Part 2 outlines the steps necessary to establish an activity-based system including how to develop an effective cost flow pattern, the tools used in this procedure, a process for planning a cost model and an outline for gathering the data required to drive it. Finally it explains how the activity-based cost accumulation model, developed in the previous section, can be used to improve a company's decision making process and demonstrates how a business can create cost estimates and evaluate pricing strategies for multi-year programs. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Paperback: 384 pages
• Publisher: Wiley; 2 edition (August 23, 2002)
• Language: English
• ISBN-10: 047123754X
• ISBN-13: 978-0471237549
• Product Dimensions: 9.2 x 6.1 x 0.8 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars See all reviews (9 customer reviews)
• Amazon.com Sales Rank: #597,333 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

14 of 14 people found the following review helpful:

4.0 out of 5 stars Very detailed, October 24, 2002

By	Arthur Keen (Austin, TX USA) - See all my reviews

Hicks has a lot to offer in this book on activity-based costing, however it is not an easy to read. It very quickly dives into the weeds of detail. I think this is a very good second book to read on Activity Based Costing, because it goes into the details of how to actually implement a system. I would recommend that you first read Kaplan's "Cost and Effect," to get a good grounding in the fundamentals before reading this book.

13 of 13 people found the following review helpful:

5.0 out of 5 stars a powerful book for small businesses making pricing decision, July 5, 1999

By A Customer

This review is from: Activity-Based Costing: Making it Work for Small and Mid-Sized Companies (Hardcover)

This is one of the most useful books I have ever read for assisting small businesses in making product and pricing decisions. As a CPA who works with many small businesses, including many manfucturers, this book provides a cost effective way to implement activity based costing for small and medium sized businesses that does not cost thousands of dollars in software and consultant fees. It presents a practical method for determining product costs and providing information that any small company can use to make pricing and costing decisions, what-if analysis, and evaluating profit strategies. This type of information has traditionally been lacking for the small to medium size company. I would strongly recommend this book for any small to medium size business and the financial advisor who works with small to medium size businesses wishing to truly improve the business decision making tools available to them.

12 of 12 people found the following review helpful:

5.0 out of 5 stars Literally breaks ground!, February 25, 2000

By	Bleda Arcað (Ankara, Turkey.) - See all my reviews

This review is from: Activity-Based Costing: Making it Work for Small and Mid-Sized Companies (Hardcover)

I can not quite imagine a single decision made in any company that does not concern cost. And, when it is about accurate costing, I can not imagine another book on business that can better assist than this one.

First, the author defines the concept, states the reasons why Activity Based Costing should be implemented in every company, and then thoroughly shows you how to do it. Since the main step-by-step example in the book concentrates on a small manufacturing organization, those who are applying the concept to service organizations may have a harder time making the translation to their specific situations. Still, I don't think that will be much of an issue. The book is very well-written and must be digested by every professional with a passion for improving their company and seize a competitive advantage.