CPA Firm Explains Activity-Based Cost Concepts for Small Businesses

PRESS RELEASE: For immediate release 8/17/00
                            
CPA Firm Explains Activity-Based Cost Concepts for Small Businesses

(Dallas, TX) Robert W. Scroggins, CPA, a Dallas CPA firm, believes that small businesses can benefit from activity-based cost concepts currently used by large businesses and organizations.

Activity based cost (ABC) is a concept developed by the U. S. government, refined by academia, and implemented by management consulting firms," says Robert W. Scroggins, a Dallas, Texas CPA. Cost accounting has traditionally accounted for manufacturing and production costs by department, cost center, or some other arbitrary collecting point. ABC, on the other hand, collects costs by activities, which is much more meaningful for measuring efficiency and improving operations than traditional cost collection points."

Scroggins says we believe that small businesses grossing $400,000 and up per year can significantly benefit from ABC. ABC is frequently implemented by large consulting firms with expensive software over a period of six months to a year or longer. Time and costs can be reduced by using in-house spreadsheets and the knowledge of in-house employees who are the real experts when it comes to business activities."

Scroggins concludes that, besides using ABC to get a handle on the true costs of operations, small businesses can use it as the basis for continuous improvement by concentrating upon improving one important business activity at a time. Its a never-ending process that provides a shortcut to process engineering, best practices, and change management which can be done in-house after an initial pilot project."
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For Further Information contact Robert W. Scroggins, CPA
E-mail rscrogg@atexascpa.com
Tel. (214) 941-7021

Robert W. Scroggins, CPA, was founded in 1984 and is located in Dallas, TX. In addition to traditional CPA services, the firm also provides business planning, accounting software, decision support, and performance improvement services using activity-based cost techniques for small to mid-sized businesses. The firm can be reached at (214) 941-7021 / Fax (360) 838-0943. The company Web site is located at http://www.atexascpa.com.