2000 Edition Activity Dictionary
OUT OF PRINT

The 2000 Edition of our very popular Activity Dictionary lists the typical activities of departments and processes of manufacturing and service organizations. And we've added 30% more activities but not increased the price! Many of the new activities added to the book are in the Management Information Systems (MIS) function, a prime area for ABC and ABM analysis. 30% more activities than the previous edition.

What the Activity Dictionary does for you...

• Simplifies the Activity Analysis Process...
  typical activities are listed by function. Ensures key activities are not overlooked.
• Saves money and time...
  reduces the time of your implementation.
• Vital to Top Implementation Team Performance...
  puts the Implementation Team in control of the interviewing process.
• Identifies the horizontal processes while interviewing...
  includes process definitions for each activity.
• Supports consistent Activity Definitions for Benchmarking.

Book Review...

ACTIVITY DICTIONARY, Tom Pryor, ICMS, Inc.,

(800) 955-2233, 1992, --"Activity-based costing (ABC) practitioners, consultants, and managers regard the interviewing process as the heart and soul of an ABC implementation project. More than a reliable data collection tool, it educates the employees about ABC and activity-base management (ABM). More important, it ensures the success of the project by assisting in building a sense of ownership among the employees. Therefore, it is imperative that the interviewer--who may be an external ABC consultant or an internal member of the project team--be well prepared, not just on the subjects of ABC and ABM but on the activities of the various departments. Other ABC implementation project teams have found this to be a daunting task. In fact, one of the major reasons given for the dearth of small-to-medium-sized ABC consulting firms is the absence of experts knowledgeable in the multiple activities of most firms. The ICMS Activity Dictionary, to a considerable extent, eliminates this major barrier to successfully implementing ABC.

Obviously, companies differ in the many activities, processes, and procedures they perform to produce a product or service. A book of this kind can only provide a list of the significant generic activities performed within each functional area of a typical organization. Consequently, the relevance of these generic activities always depends on individual firms.

This book serves its basic purpose. An interviewer will be prepared to assume the role of teacher, motivator, and facilitator during the interviewing process. The dictionary improves the interview technique and ensures that activities are defined clearly, consistently, and at the right level of detail.

The Activity Dictionary provides multiple cost drivers for each activity that direct and focus minds on the need to eliminate waste and improve efficiency by attacking the underlying causes of costs. Input and output measures also are provided for each activity, which helps companies in selecting activity measures and drivers and provide a good guide to activity budgeting and performance measurement.

Made up of three major parts, the book is arranged in a logically structured, easy-to-use format. The Function section is divided into the major functions of a typical organization (accounting, advertising, computers, engineering, general administration, human resources, legal, manufacturing, marketing, materials management, quality, research and development, and sales). Each page offers ample information with which to perform an activity analysis of a typical primary activity. The Secondary section in a general way describes the typical secondary activities that support an organization's primary activities. Finally, and arguably, the most important part is the Business Process section. It is divided into the major business processes of a typical organization, enhancing the cross-functional viewpoint provided by an ABC information system. The process map that results from this view of the organization has become a key element in the design of a ABC system.

This invaluable and comprehensive reference tool for ABM and ABC is not without flaws. Perhaps the most significant among them is the omission of the generic activities in service organizations such as banks and hospitals. Maps and flowcharts also are omitted. It is hoped that future editions will fill these gaps.

Activity Dictionary belongs in the library of every ABC practitioner, consultant, and manager."

Augustine I. Duru, CPA, MBA
ABC Consultant
Charlotte, N.C.