Activity Based Costing (ABC) Model: A Case Study of MYOB

Table of Contents
Introduction.............................................................................................................................................2
ABC model...............................................................................................................................................2
Mission and Vision...................................................................................................................................2
Business Strategy.....................................................................................................................................3
Apply the ABC model...............................................................................................................................3
recommendations...................................................................................................................................4
Accounting Management Tools...............................................................................................................4
conclusion................................................................................................................................................5
References...............................................................................................................................................5

Introduction
The main aim of the assignment is to understand in detail the role of Activity based costing
system in the organisation and how organisation can greatly benefit by implementing them. The
company which is considered for the study is MYOB (Mind your own business), a leading
software solution company focuses on the software solution on taxation and other key aspects for
the small and medium sized business in Australia and New Zealand. The company provides
software products and services to these business through proper accounting aspects, payroll
processing, taxation services, point of sale, CRM etc. The SME solution department intends to
offer clear solutions to the SME sector to manage their business in a sustainable manner. The
practice solutions department intends to provide business related software and accounting
practice systems for professionals. The company offers various software solutions to the
accountants, book keepers and others through its products like pay direct, MYOB advanced,
MYOB pay etc. It also offers client accounting software system, practice management aspects,
taxation and other record management aspects for the organisation.
ABC model
The ABC model is an accounting method that allows a company to associate resource-based
costs with the business process, not just for products or services. With this template you can
allocate and allocate resources and other costs related to the products you usually use. It should
be noted that the ABC cost system does not exclude costs and, on the other hand, helps provide
more detailed cost information and display user-based products. . The main advantage of the
activity-based cost model is that it allows the boss and auditor to understand overhead and lead
product-based products. Management can improve profitability by carefully monitoring total cost
and performance, improving business process efficiency and helping identify costs at different
levels of production or service. In addition, this model encourages the organization to focus on
improving the quality of products and services, such as TQM, and constantly improving the
process, which improves the design and control of the organization's various processes. and will
be inclined to associate with business strategy to make effective decisions. Using the ABC cost
model, the company identifies waste or process efficiency and measures to eliminate them by
visibility of activities without activities. In addition, the ABC cost method helps managers make
clear pricing, construction or purchase decisions, budgets and forecasts, etc., which mainly
includes construction costs. (Brigham, 2010)
Mission and Vision
The company's main goal is to increase the company's growth in a sustainable manner and
increase the value of all stakeholders, including employees, customers, suppliers, shareholders,
business partners and communities. The company tries to take preventive measures to avoid
harmful effects on individuals, communities and the environment and try to develop best