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Higher Profits, Increased Efficiency With Time-Driven Activity-Based Costing — Retail Solutions Online Interview with Steven Anderson, Acorn Systems
March 30, 2007
•Article: Activity-Based Costing
Activity-Based Costing (ABC) is a technique which allows companies in all industries to determine the actual cost associated with each SKU in inventory, each service provided, and each customer you serve.
Businesses must fully understand the cost, time, and quality of organizational activities to achieve the major goals of process improvement and simplification. In order to increase business process efficiencies, documentation and activity understanding are key building blocks. This ability to place costs on activities and their outputs provides a clear metrics for improvement, whether for determining long-term improvement projects or for shortterm success.
Retail Solutions Online had a chance to catch up with Mr. Anderson to discuss: his view of ABC in today's global market; the key components organizations must focus on while using ABC; the steps for properly performing ABC; common mistakes Anderson sees when businesses try and tackle ABC; and much more. Enjoy the discussion.
Click Here To Download:•Article: Activity-Based Costing
Steven Anderson is Chairman and Founder of Acorn Systems, a profit improvement company that leverages its proprietary software and consulting services to help boost the operating profits of their clients. In 1996, Mr. Anderson founded Acorn to assist turnarounds and buy-outs through its unique approach to Activity-Based Costing that he pioneered (now called Time-Driven ABC). After a successful start that more than doubled the profits of the first five clients, he converted the methodology into a software solution that could assist a broader audience. Today, Acorn has over 150 clients in the retail, financial service, consumer packaged goods, and distribution sector. The company has added over $15 billion to the market capitalization of its clients. Mr. Anderson is currently involved with helping Acorn further penetrate the private equity space. He has written over 20 articles, white papers and case studies on M&A Strategies, Supply Chain Management, Customer Profitability, Product Management, Lean Solutions, and IT Value Management.
