The Hampton Roads office of AECOM, a technical and management- support services company, held a school-supply drive to support children through Virginia Beach's Samaritan House. In previous years, employees bought supplies. This year, a new approach was taken to raise money: A giving tree was designed and displayed in the main lobby. Employees were encouraged to donate money in order to add a leaf with their name on it. After two weeks, the office had raised $350 toward purchasing school supplies for local students.
To: NATIONAL EDITORS Contact: Peter Broderick, Vice President, Corporate Communications of Abt Associates, +1-617-349-2882, Peter_broderick@abtassociates.com
There will always be institutions for which implementing a capacity-based costing methodology will not be appropriate. However, for many institutions, the business value created from such a methodology will far outweigh the additional expense of getting there. Financial institutions must balance their need to allocate costs for segment and management reporting with their need to understand the true cost of providing services to customers. Full-absorption costing has historically been utilized to support management and segment reporting, due to its ease of implementation. But this has come with consequences: inaccurate unit costs for pricing decisions that have been the source of endless internal debates over the charge of services. Capacity-based costing can provide a more accurate pict...
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