Today's business environment requires an increasing number of diverse products, an expanding number of distribution channels, and greater reliance on advanced technology. In addition, cross-functional activities are now the norm and have created interconnectivity and mutual dependencies across departments and functions. This increasingly complex business environment has led to higher indirect and overhead costs and has made traditional cost accounting practices outdated. Oracle's PeopleSoft Activity-Based Management goes beyond traditional accounting methods to deliver business intelligence that supports strategic and operational decision-making. It traces overhead costs based on the cause and effect of business activities to provide you with the real costs of business processes. Armed with this level of incisive cost and profitability analysis, you can answer strategic questions about your business such as: How much does it cost to serve my customers? Which customers, products, or channels are the most profitable? Where are the best opportunities to reduce costs? What products or services should we invest in or divest? |