Integrated Activity Based Costing and Economic Value Added Framework
This paper presents a cost and performance measurement system that integrates the Activity-Based Costing (ABC) method with the Economic Value Added value-based financial performance measure.
"This paper presents a cost and performance measurement system that integrates the Activity-Based Costing (ABC) method with the Economic Value Added value-based financial performance measure. This proposed ABC-and-EVA system is an engineering management tool that helps to successfully manage cost and capital. It allows enterprise leaders to create shareholder value through cost structure improvement. In the ABC-and-EVA system, the cost of activities does not only include the rate of the consumption of resources, as it does in a traditional ABC system, but also capital demand. The steps for implementation of the proposed system are illustrated. A comparison is made between a traditional ABC system and an ABC-and-EVA system by examining the cost for each activity at the first stage. Then an adjustment to the income statement and the balance sheet is shown using the Economic Value Added approach. This information is then transformed into transparent capital charges using a newly developed method called Activity-Capital Dependence (ACD) Analysis. Changes to the end-product costs as a result of adding these capital charges to the activity costs are shown. The paper concludes with a discussion of possible changes to corporate strategies and business performance when the proposed ABC-and-EVA system is implemented in a manufacturing company."
Download (please login and scroll down)
Documents are in common file formats such as Microsoft Word (doc), Powerpoint (ppt), Excel (xls,csv,xlsx), and Adobe pdf.Download
In this series, we will discuss IT Value - from its definition to a framework to measure and track it
Align business and IT strategy using Tracy and Wiersema’s Value Discipline model and "technology themes"
Applied Information Economics (AIE) is a method for quantifying the value of IT investments. This overview of AIE provides an overview of key IT decision problem, how AIE solves them and how AIE is different from other methods.
An excellent guide to Economic Value Added (EVA) - it introduces the framework and provides good guidance on it use. The handbook approaches the topic from a general manager's perspective (not from a quant jock's perspective) so it makes the concept... Framework to measure the value of IT investments in not for profit organizations such as public or government entities. Business-IT alignment From a Value-Based Perspective covers the basics of it alignment, value modeling as a tool and provides an overview of VITAL - Value-based IT Alignment.
This presentation discusses a case study in building an effective IT performance management program Cloud computing business case to justify based on return on investment (ROI) and total cost of ownership (TCO) This paper introduces Economic Value Added (EVA) in simple, easy to understand terms. ICT Business case template as an MS Excel spreadsheet that you can use to justify, and monitor it investments. This presentation introduces Earned Value Management Systems (EVMS) in simple, easy to understand terms with practical examples. This paper explains in depth the Economic Value Added (EVA) framework, its proper use and compares the framework to other value measurement frameworks. Value-based IT Alignment (VITAL) overview and discussion on basic underlying principles and components of this it value based framework. A high level overview of cloud computing, its benefits and value versus on-premise application deployment. This paper discusses information technology cost management (IT Cost Management) from both a theoretical and practical perspective. It discusses IT cost management frameworks, and their application in industry. This case study discusses the implementation of an information technology (IT) performance measurement program - steps followed and frameworks used - and lessons learnt. A good discussion on EVA and how to plug its shortcomings. A very good presentation on EVA. Good Read! This paper details the critical cost of ownership metrics and explains how they impact your return on investment.
This article discusses measuring IT Value with a service-oriented approach based on ITIL. This presentation discusses the valuation of intangible assets - a great tool to assess the value of information technology and related assets Last week, we lay the foundation for a discussion on IT Value. This week, we look at specific areas where IT creates value. Last week, we focused on revenues. This week, we look at the costs in the IT value equation.
Last week, we discussed the cost dimension of IT Value. This week, we will discuss the time to market dimension.
Last week, we discussed the time to market dimension of IT Value. This week, we will discuss the quality dimension.
Last week, we focused on quality and its impact on IT Value. This week, we will take a look at productivity and its impact on IT Value
Last week, we focused on productivity and its impact on IT Value. This week, we will take a look at customer satisfaction and its impact on IT Value
Last week we discussed customer satisfaction. This week we will look at the risk dimension of IT Value.
Guide to Information Technology Total Cost of Ownership (TCO) provides a model to identify, select and fund the best IT projects. This volume details a framework for establishing and maintaining a performance based management program. A framework to calculate the total cost of ownership (TCO) of a data center and network room. A 4-year total cost of ownership (TCO) comparing cloud and on-premise business application deployment. This whitepaper summarizes key factors to consider in a platform cost comparison that evaluates financial costs and benefits of mainframe and distributed platforms. This whitepaper presents a total cost of ownership (TCO) based comparison of initial deployment costs of blade versus rack mounted servers This white paper uses the total cost of ownership (TCO) model to evaluate advanced store system software. This case study uses Forrester's Total Economic Impact (TEI) to evaluate the financial impact of implementing the Virtual Queuing Solutions. The document shows all calculations and assumptions that go into creating this business case using Total Eco... A framework to calculate Total Cost of Ownership (TCO) for enterprise resource planning (ERP) systems.
Posted on 04/13/2010 by