Using Activity-Based Concepts to Improve "the Bottom Line"

Profitability is the ultimate measure of business success. In the short term, profitability can result from a few critical, intuitive decisions made by an individual decision maker. In the long term, however, profitability results from an ongoing series of fact-based business decisions made by a variety of decision makers, each with different objectives and a different perspective.

Cost-related measurements comprise a major portion of the "facts" used by decision makers. Unfortunately, the cost-related "facts" used by decision makers at a vast majority of organizations are actually "fiction" - "fiction" driven by an obsolete and invalid economic cost model.

Since 1985, D. T. Hicks & Co. has worked with nearly two hundred businesses to develop cost-effective methods for developing the accurate and relevant cost information they need to lead them into a more profitable future. This work has resulted in the "abc" solutionTM, an "activity-based" decision support process, originally designed for small and mid-sized organizations, but one that has proven to be effective for larger organizations as well. Using the "abc" solutionTM, businesses are able to develop the accurate and relevant cost information they need to make effective pricing, product/service line management, customer relationship, capital investment, cost reduction, and other critical decisions without investing in specialized software or implementing a new cost accounting system. Our client organizations have ranged from $2 million to over $3 billion in annual sales and have included firms in health care, packaging, distribution, printing, and marketing services as well as automotive, aerospace, food, furniture, heavy duty equipment, and other industries.

A tour of our website will provide you with insights into the validity of the cost model used at your organization and the steps you can take to improve your "bottom line" through the application of activity-based concepts.