Activity Based Costing (ABC) sustainability – a cautionary tale

A US telecommunications billing centre, responsible for billing high-end business customers of telecommunications services implemented ABC to overcome severe customer dissatisfaction and financial problems. Though the ABC implementation was successful the initiative proved to be unsustainable due to: 1) The ABC implementation being viewed as a standalone, one-off solution to a specific problem and not as one cog in an integrated performance management solution; 2) The implementation lacking an i...

BPIR Categories

10.2.4 Use analytical techniques on data
14.1.5 Analyse performance data.