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Implementing Activity-Based Management in an Acquisition Organization

Abstract : To manage costs and comply with financial management laws and regulations government acquisition organizations must first understand what they do and why they do it. This is critical to identifying customers defining outputs and developing systems to collect and trace the cost of resources to outputs. One of the more popular models for collecting and tracing costs is known as activity- based costing (ABC). This article examines how one government acquisition organization is using ABC to understand and define outputs and processes to collect and trace the cost of doing business and how it plans to use this information in the future.