Many managers still consider Activity-Based Costing (ABC) to be something complex and challenging to implement. However, if your company has been facing financial difficulties for years and struggling to control costs efficiently, could the real challenge lie in adopting ABC or in continuing to ignore the need for precise cost control? When implemented correctly, ABC can be the differentiator your company needs to leave behind past inefficiencies.
In the 1990s, Activity-Based Costing became a true craze, much like we see today with the popularity of Artificial Intelligence. The concept, created by Robert Kaplan, was inspired by work already done by General Electric in the 1950s, but due to the lack of technology at the time, implementing it was extremely challenging.
The major breakthrough came with the rise of personal computers and the creation of specialized software in the 1990s. It was during this period that Activity-Based Costing gained popularity and started being used by companies of various sizes. The software became accessible, and businesses realized its importance for improving financial control and internal processes.
Three suppliers stood out during this historic moment:
In the late 1990s, with the approaching “Y2K bug” and the growing popularity of ERP systems, Activity-Based Costing took a backseat. The priority for companies was to ensure their ERPs could handle everyday problems, while ABC was left aside. Over the years, the dependency on ERPs and the combination of tools like Excel and BI prevailed, but the issue of cost management remained unresolved.
Despite market changes, the need for an effective system to accurately cost processes, products, services, and customers remained. Companies that did not adapt to this reality ended up facing financial and operational difficulties.
It is in this scenario that MyABCM emerges, a modern and effective tool for implementing Activity-Based Costing. It combines the best of historical solutions with current technology, offering a fully integrated platform with corporate systems. MyABCM allows companies of various sizes to adopt a robust cost management system that is easy to implement.
Contrary to what many think, Activity-Based Costing doesn’t have to be a complex task. MyABCM makes the solution accessible, efficient, and adaptable to the needs of each company. Don’t be fooled by the apparent complexity. Accurate measurement is the key to efficient management and successful financial control.
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