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- Discuss how a time-driven ABC cost system can be implemented in the company you researched and the benefits that the use will yield to the business performance.
- Assess how using an ABC system can provide a competitive advantage to the company in the market space it operates and the resulting impact on the business performance.
- Examine the potential impact of time-driven ABC costing on services provided online with those provided through traditional channels, considering how this knowledge will impact decisions made by management about these services.
- Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
ABC- ACTIVITY BASE COSTING Page | 1 ABC: Activity Base Costing, a New World Leader
Pamela M. Perry
Prof.: Dr. Jones Olajide
January 27, 2017 ABC- ACTIVITY BASE COSTING Page | 2 Abstract
ABC, the acronym sounds like a children song. However, in the accounting world it is a way to
allocate cost as to identify waste, improve sales, and to streamline revenue recognition. The
notion is not new concepts, but a improve way to prevent over pricing items that cost peanuts to
create. ABC- ACTIVITY BASE COSTING Page | 3 ABC: Activity Base Costing, a New World Leader
As we dive into the ABC (activity base costing) concept, the communication about the
item has had several names. Corporation has called it Lean Management, High Performance,
Work, Team, or Six Sigma. The whole purpose of the training is to show where waste is causing
unnecessary cost to a product, which prevents an entity from recognizing true revenue stream
Convergys: Business Concept
The company of choice is called Convergys Corporation. The entity focus on provided
services on several platforms such as automotive, technology, travel & hospitality, and other
areas. They have over 130,000 employees, with 150+ locations in 31 countries. The company
prides itself with the statement of being a world leader with awards showing its commitment to
growth and innovated thinking. However, the company has had negative impact as well. Its
financial states shows that the company loss of a client in 2016 in comparison to the 2015
quarterly report. The company core business is to offer customer management services in a
The company operational model is based on staffing hours or the number of contracts
handled by service agents using the contractual rates during the duration of the contract. The
company is diversity provide it the ability to over a wide range of customer transactions as it
states, cost effectively.
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