Indianapolis ActivityBased Costing of City Services A Robert S Kaplan 1996
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Activity Based Costing: Indirect Method ActivityBased Costing (ABC) is an information management and cost estimation methodology developed by consulting firm PriceWaterhouse in the 1970s. ABC measures costs by analyzing the activities within a particular function. The concept was first applied to healthcare in the 1970s, but was later used in the private sector, particularly in manufacturing. This methodology allows the organization to cost products or services based on the activities involved in their production, thereby reducing the administrative costs associated with the management of
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The city of Indianapolis, Indiana, is known as the capital of American city governments. With a population of nearly three million, it is the fastest growing city in the nation, boasting an annual economic impact that reaches $20 billion. Despite this success, the Indianapolis Metropolitan Area Commission (IMAC) and the Indianapolis Department of Metropolitan Development (DMMD) are facing numerous challenges. As a result of these challenges, the city recently implemented ActivityBased Costing (ABC) to help it improve its decision making and financial performance. ABC,
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In the first paragraph, I introduce a case of a city in India that used the ActivityBased Costing (ABC) method to estimate city services’ costs, to develop service-based budgets, and to manage resources. In second paragraph, I outline the purpose, goals, and steps involved in the case study. Then I explain the ABC method. I also briefly summarize the results and their implications for the city. In the third paragraph, I compare the service delivery and resource allocation costs that the city estimated and used, to what is actually spent in real-world scenarios. In
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In India’s booming cities, the traditional cost analysis is based on the per head expenditure methodology. A few well-known cities have adopted the cost management software and tools such as ActivityBasedCosting (ABC) to track the utilization of city services. It is a comprehensive management technique, which considers the utilization of services in the context of individual clientele and identifies resources utilized. By utilizing the services, the government’s utility bills are calculated and collected. find more information Activity Based Costing (ABC) is a costing technique
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The City of Indianapolis’s long-term planning process resulted in two major urban renewal projects. The first, the Indianapolis Streetcar Plan (1959), focused on replacing a system of narrow one-way streets with an underground elevated corridor and new sidewalks and streetscapes. The second, the 1990s Plan (1990), set a new goal of a “City of Quality,” with more residential density, wider sidewalks, and better streetscapes throughout the city. Both of these projects
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Indianapolis is a city with a population of around 250,000. For decades it’s been known to be one of the most cost-efficient cities in America. But why? How? What are its cost-saving measures? Indianapolis ActivityBased Costing of City Services A Robert S Kaplan 1996 The author provides a historical background and describes the city’s financial challenges: Indianapolis has had to face a challenging financial environment in recent decades. Its economy has undergone steady
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I have a personal experience related to this. A few years back I worked in the service of the city of Indianapolis. Our service was the Activity Based Costing, which was introduced to manage service delivery. I worked for a company where I was assigned to the ActivityBasedCosting department. ActivityBasedCosting of Service Delivery: I started to get acquainted with this service in 2000, and it started as a few activities, like water services, street maintenance, and parks maintenance. These activities were classified as basic, intermediate and high