Activity-Based Costing Proves Worthwhile
The study was funded by The PricewaterhouseCoopers  Endowment for The Business of Government, and is called 'Using Activity-Based Costing to Manage More Effectively.' Authors are Professor Michael H. Granof, Assistant Professor David E. Platt and Assistant Professor Igor Vaysman, all from The University of Texas at Austin .
The report shows how using ABC over traditional accounting systems allocates "overhead" costs to programs and activities in a more reflective way of the factors that influence them.
The case study presents several lessons that are applicable to both governmental and not-for-profit organizations, especially executives in government who quantify performance and financial costs.