ABC Focus

ABC Focus makes activity based costing techniques accessible to a wide range of users. The package was reviewed in Charter (published by The Institute of Chartered Accountants in Australia) recently. The conclusion of the reviewer, a senior accountant at Ernst & Young, follows:

"ABC Focus is a tool which makes perplexing ABC concepts simple to understand and use. Overall it is a very attractive package because its flexible costing model, combined with multi-user network capabilities, consolidated reporting and a very competitive pricing regime, make it suitable for large or small business in virtually any industry."

ABC Focus costs products made or sold, services provided, customers, processes, markets; in fact any aspect of the business.

How does ABC Focus work?

The user enters:

• the objects to be costed (the "cost objects") - e.g. widgets.
• the activities (the "cost pools") - e.g. deliveries.
• the cost drivers - e.g. number of deliveries.

Revenue is then entered and allocated to the cost objects directly. The cost lines are entered and allocated to the cost objects either directly, or indirectly via cost pools, as appropriate.

Cost lines have  three main sections: employees, materials and expenses. There are extensive employee facilities including individual or group "on-cost" calculations.

Data entry is facilitated by the Integrity check available at all times.

ABC Focus quickly calculates the results and shows the cost of the cost objects and the cost pools on a total or per unit basis. There are detailed audit trails:

• The flows into and out of the cost pools are audited.
• Cost objects are audited by cost pool and cost lines.
• The trails are presented in category, significance or type order.

The system includes an option to combine cost objects in unlimited permutations to create new composite cost objects.

Note pads are available for each cost pool and cost object. This allows for detailed documentation.

"What if" scenarios are available by making the appropriate selections from the what-if routine.

The software is driven from a unique "map" on the front screen that acts as a guide through the activity based costing ("ABC") analysis and implementation.

The reports from ABC Focus are well presented and reporting is extensive. Summary and detailed formats are available. There is a comprehensive tracker facility for both cost objects and cost lines.