Activity Based Costing (ABC), Features &
Features and Characteristics take ABM and Quality to the next step. The concept of
Feature Costing was created by Jim Brimson the project manager of CAM-I who brought us ABM
in the middle 1980s. Jim Brimson has written 5 books on ABM (see Our Books) and taught
over 100 seminar on ABM and ABB.
Feature costing focuses on understanding what causes cost to vary before the fact rather
than after-the-fact reporting of ABC data. Feature costing focuses on the causes of
variation. There are 3 major sources of variation:
Product and services
Failure to execute the process properly
By using the quality technique of root cause analysis, organizations can better understand
what causes the failure to execute a process properly. By focusing on product and customer
features, organizations can better understand what causes cost to vary and thus impact
profitability before the fact. Features A product/service or customer feature is anything
that causes an organization to use additional or different tasks in executing a process.
Characteristics A product/service or customer characteristic is anything that causes more
time in executing a business process, activity, or task.
For more information on Feature Costing, see :
Jim Brimson's article in the Journal of Cost Management or read our book on Driving Value
Using Activity Based Budgeting published by John Wiley.
RESULTS FROM EXPERIENCED VALUE CREATORS
To achieve your organization's goals, contact our experienced value
creators who focus on transferring value creating knowledge to your organization. We look
forward to helping you achieve your goals.
Value Creation Group, Inc. 7820 Scotia
Dr. #2000 Dallas, TX 75248 Ph: 972.980.7407