Abc System Report Essay

2354 Words Oct 11th, 2010 10 Pages
Table of Contents 1. Introduction: 2 2. Three voice telecommunication costing system: 3 2.1 Overview about three system: 3 2.2 The differences between 2 common system 1995-1998 and 1999: 4 3. Overcharging of the 1995-1998 system: 5 4. Assessment of overconsumption in 1995-1998 period: 6 5. Cost savings through reduced consumption in the 1999 system: 7 6. Conclusion: 8 7. Recommendation: 8 Appendix 1: Calculation cost of a large and a small customer in 1995-1998 system and 1999 system 9 Appendix 2: Calculation cost of actual usage in 1998 and proposed usage in 1999 under 2 systems in Huntsville Division 10 Appendix 3: Cost savings company get and lost 11 Ciatation: 12

1. Introduction:
For several
…show more content…
Moreover, too much separate cost pool to calculate the rate for each voice service. Therefore, it was believed that too complicated and could not reduce the cost if continue to use. 1995 – 1999: Billing simplification
In this period, there was a movement in processes billing simplification occurring between SSG and its internal customers. According to Boeing case, “The new system was a reversion from an activity-based system (ABC) that assigned costs on a causal basis to a simplified system that allocated costs using one average rare”. In this new chargeback system, voice costs were noticed at a high level with just 24 organization units receiving monthly voice cost allocations. In addition, the new chargeback system eliminated some of the computer system needed to track end-users’ budget numbers and eliminated over 50 percent of the routine reporting currently being done. This simple costing system developed uniform standards and policies for managing the consumption of services and abandoned detailed reports generated by the accounting system. However, it is still estimated that several million dollars was saved for Boeing each year by this simplified billing procedure through voice services. 1999: Voice billing changes – A return to detailed billing
Because of the belief that charging voice services at one average rate per salaried employee has led to

Related Documents