Activity Based Costing (ABC)
At UITS, ABC is an annual process that allocates costs (expense) to our services and is used to better understand, analyze, and report on the cost of providing those services.
The ABC app
The ABC app helps determine both the total cost and unit cost of UITS services. Annually, UITS divisions update their service lists and provides them to the Finance Office (FO). The FO then loads the lists and expense data into the ABC app. Managers then use the app to allocate personnel and non-personnel costs by account/subaccount to UITS services. The FO uses the allocations to calculate total and unit costs for each service.
After the FO completes its analysis, final results are provided to division leaders and published online.