Flowchart Symbols Accounting.
Activity-based costing (ABC) flowchart

Activity-based costing is a well-known methodology, with the help of which anyone can identify the activities in their organization. It also helps assign the cost of each of the existing activities with the existing resources. This model assigns all indirect costs, which are not directly related to production, into the direct ones, the opposite ones, being compared to the conventional costing.

Chartered Institute of Management Accountants defines ABC as one of the existing approaches to the costing as well as monitoring the activities, involving tracing the consumption of the resources and the costing final outputs. During this process, the resources are assigned to the activities, and the last ones - to cost objects, based on the consumption estimates.

Having ABC, any company can estimate the cost elements of their entire products, services and other activities. This costing may help inform a company's decision in order to eliminate and identify the products as well as services, which are simply unprofitable. It is also possible to lower the prices of those products or services, which were previously overpriced, if needed, in order to finally sell them. It is also always possible to eliminate as well as to identify all of the ineffective service or/and production processes and to allocate the processing concepts, which can lead to the very same product, but at a better yield (known as a “process reengineering aim”).

The methodology named “ABC” performs an activity of assigning an organization's resources according to their costs through the activities to this organization’s services and products, provided to its customers. This methodology can also be used as a tool for the understanding the product as well as the customer cost. It also becomes clear to understand the profitability of any organization, based on its production or its performing processes, that is why ABC has been used in order to support all of the needed strategic decisions (for example, outsourcing, identification, pricing, measurement of process improvement initiatives, etc).

Although, at some point ABC method became too expensive and difficult to implement for small gains, so the alternative methods were used. Though, the application of an activity, which is based on the recording that it may be applied as an addition to any activity based accounting, can transform the concurrent process accounting into a more authentic approach. Nowadays, the percentages of indirect costs have risen, so this technique became too inaccurate for a reason of the indirect costs became being not caused equally by all products. Nevertheless, instead of using the broad arbitrary percentages in order to allocate costs, “ABC” seeks for a possibility to identify the cause and effect relationships to objectively assign costs, so once it is done, the cost of each of the activities is attributed to each product or service to the extent, so we can say that the product uses the activity. Now, ABC often identifies all of the areas of high overhead costs per unit and so it directs the attention in order to find the ways of reducing the costs of costly products.

Activity-based costing was first clearly defined in 1987 and it is been used since up to now. The focus, firstly, was only on the manufacturing industry, as that is the field of business activity where the increasing technology as well as the productivity improvements have reduced the relative proportion of the direct costs of both materials and labour, but at the same time they have increased the relative proportion of indirect costs. Apart from the manufacturing industries, the financial institutions became using “ABC” method, having the diverse customers and products, which causes the so-called “cross-product” and “cross-customer” subsidies. Thus, the activity based costing, of simply ABC, was originally developed for manufacturing, became a more useful tool for other spheres of the business activity.

This activity-based costing was explained in 1999 in the book Management Challenges of the 21st Century, being stated by the author, that the traditional cost accounting focuses on what it costs in order to do something, as well as records the cost of “not doing”, such as the cost of waiting for a needed element to be able to continue the process of production. Such ABC method helps record the costs, which the traditional cost accountings cannot do.

For using ABC it is enough to create an ABC, or activity-based costing flowchart, and having ConceptDraw PRO makes things much simpler in order to get the needed result in a short period of time. Having the accounting flowchart symbols from the pre-developed solutions, which can be found both on this site or in ConceptDraw STORE, is the way to finish with the drawing of ABC flowchart in only a couple of hours, or even minutes, depending on how familiar you are both with ConceptDraw PRO as the solutions, created by the CS Odessa IT specialists for you to be able to achieve the professional result. ConceptDraw PRO is nowadays one of the best diagramming vector drawing tool. Being a flowchart making software extended with the specially developed “Accounting Flowcharts solution” from the “Finance and Accounting area” of ConceptDraw STORE, this application allows you as well as any other ConceptDraw PRO user, to draw a smart looking flowchart, using the pre-made examples and templates of ABC charts.


Accounting Flowcharts solution in ConceptDraw STORE

Pic. 1. Accounting Flowcharts solution in ConceptDraw STORE

Thus, the “Accounting Flowcharts solution” extends ConceptDraw PRO with a library, which contains 12 major flowchart symbols, which are all the vector shapes that can be used for representing any document process flow diagrams, as well as data flow diagrams and document flow tasks in order to explain any needed accounting work process. This flowchart software is widely used in terms of making the accounting process flow diagrams as well as any needed presentations for explaining the accounting process in a simple visual way and it is today available for you as well.


Accounting Flowcharts Symbols

Pic. 2. Accounting Flowchart Symbols

Using the Accounting Flowchart template and symbols.

Symbols Accounting Flowcharts

Pic. 3. Accounting Flowcharts Template

Add flowchart symbols to the diagram by dragging them from the Accounting flowcharts library to the document page.

Connect the flowchart elements by the arrow connectors using the Smart Connectors tool.

Use Line, Fill, Shadow and Text tools to format and design the accounting flowchart.


Accounting Flowchart

Pic. 4. Accounting Flowchart Design

A solution useful for accountant who need to produce flowcharts showing payment, purchase order, or procurement processes.

Flowchart Symbols Accounting. Flowchart Design

Pic. 5. Activity-based costing flowchart.

This accounting diagram use regular ABC flowchart symbols of Accounting Flowcharts solution from Finance and Accounting Area of ConceptDraw Solution Park.

R = resource-catagories
RCD = Resource Cost Drivers
A = activities
ACD = Activity Cost Drivers
O = Cost Object
DM = Direct Material
DL = Direct Labour.

This example was redesigned from the commons.wikimedia.org




Related Solution:

TEN RELATED HOW TO's:

Process Flowchart

When trying to figure out the nature of the problems occurring within a project, there are many ways to develop such understanding. One of the most common ways to document processes for further improvement is to draw a process flowchart, which depicts the activities of the process arranged in sequential order — this is business process management. ConceptDraw PRO is business process mapping software with impressive range of productivity features for business process management and classic project management. This business process management software is helpful for many purposes from different payment processes, or manufacturing processes to chemical processes. Business process mapping flowcharts helps clarify the actual workflow of different people engaged in the same process. This samples were made with ConceptDraw PRO — business process mapping software for flowcharting and used as classic visio alternative because its briefly named "visio for mac" and for windows, this sort of software named the business process management tools. This flowchart diagram shows a process flow of project management. The diagram that is presented here depicts the project life cycle that is basic for the most of project management methods. Breaking a project into phases allows to track it in the proper manner. Through separation on phases, the total workflow of a project is divided into some foreseeable components, thus making it easier to follow the project status. A project life cycle commonly includes: initiation, definition, design, development and implementation phases. Distinguished method to show parallel and interdependent processes, as well as project life cycle relationships. A flowchart diagram is often used as visual guide to project. For instance, it used by marketing project management software for visualizing stages of marketing activities or as project management workflow tools. Created with ConceptDraw PRO — business process mapping software which is flowcharting visio alternative or shortly its visio for mac, this sort of software platform often named the business process management tools.business process flowcharts, flowchart symbols, process flow diagram, workflow diagram, flowchart maker
Picture: Process Flowchart
Related Solution:

What process should be essentially adopted.Accounting Flowchart Example

The Accounting flowchart shows how information flows from source documents through the accounting records. The are based on the accounting procedures or processes.Flowchart - Receiving
Picture: What process should be essentially adopted.Accounting Flowchart Example
Related Solution:

Pyramid Diagram and Pyramid Chart

Any hierarchical structure of any company can be represented as a triangle or a pyramid. You can create a pyramid diagram and pyramid chart of any complexity using special libraries included in ConceptDraw PRO. Actually, any knowledge or chain of facts can also be depicted as a pyramid. A wide range of graph and chart are utilized in marketing to maintain documentation and various visual issues, that deal with marketing information and data. The marketing value pyramid can be created to illustrate how the value of company, or product is based on its competitiveness. To design this diagram we used ConceptDraw PRO drawing tools in conjunction with Pyramid solution for Solution Park.Pyramid diagram example - Market value pyramid
Picture: Pyramid Diagram and Pyramid Chart
Related Solutions:

Activity Network Diagram Method

Activity Network Diagram - This sample was created in ConceptDraw PRO diagramming and vector drawing software using the Seven Management and Planning Tools solution from the Management area of ConceptDraw Solution Park. This sample shows the PERT (Program Evaluation Review Technique) chart of the request on proposal. A request for proposal (RFP) is a request of the company or the organization to potential suppliers to submit the business proposals for service or goods that it is interested to purchase. The RFP is represented on the initial procurement stage and allows to define the risks and benefits.PERT chart - Request for proposal
Picture: Activity Network Diagram Method
Related Solution:

ConceptDraw PRO Compatibility with MS Visio

If you ever wanted to try any diagramming tools except of Visio, but were afraid to lose existing documents, there’s good news for you. One of the most striking features of ConceptDraw PRO is it’s perfect compatibility with MS Visio, which guarantees that you won’t depend on operating system anymore, because another ConceptDraw PRO feature is that it’s cross-platform tool. Don’t waste your time looking for other options, you’ve found the solution already! Business professionals often utilize the MS Visio as a common tool for making various issues on business visualization. MS Visio is a strong software with good capacity to maintain complex business solutions. But there is no MS Visio for Apple OS X . This is a large invocation, and one would be pleased to recognize that ConceptDraw PRO is the ideal alternative to MS Visio. Primarily, because this software works natively on both Windows and Apple OS X platforms. if you have migrated from Windows to Mac, or need to communicate in a cross-platform conditions, you’ll search for MS Visio replacer. ConceptDraw PRO is the exclusive professional business diagramming application that runs on both Windows and Apple OS X. The opportunity exchange files between PC and Mac, as well as between ConceptDraw PRO and Visio is the significant advantage that permits you to display and to collaborate business information in effortless and cost-effective way.ConceptDraw PRO Compatibility with MS Visio
Picture: ConceptDraw PRO Compatibility with MS Visio

How well does Your Purchase Process Flow?

The purchasing process follows very specific guidelines and includes an purchasing cycle flowchart. Common key elements of purchasing process.Flow chart - purchasing process
Picture: How well does Your Purchase Process Flow?
Related Solution:

HR Flowchart Symbols

A comprehensive selection of predesigned vector stencils libraries allow you to create eye-catching infographics relating to any human resource management process. Also included are standardized hr flowchart symbols, meaning your diagrams will be relevant and understood by all business associates.HR Flowchart Symbols
Picture: HR Flowchart Symbols
Related Solution:

Ordering Process Flowchart. Flowchart Examples

A flowchart is a widely used type of diagram that visually represents an algorithm, workflow or process, using the boxes of various kinds to depict the steps and connecting them with arrows to show the order of execution these steps. Еhe ConceptDraw PRO supplied with Accounting Flowcharts Solution from the Finance and Accounting Area of ConceptDraw Solution Park is a powerful diagramming and vector drawing software which ideally suits for designing Ordering Process Flowchart of any complexity.Ordering Process Flowchart. Academ Flowchart to get simply the GCD of two positive integers
Picture: Ordering Process Flowchart. Flowchart Examples
Related Solution:

Project — Working With Costs

ConceptDraw PROJECT delivers a rich set of built-in functionalities and optional product extensions that support your daily workflow in time-saving and creative ways. This video lesson will teach you how to work with costs in your project document.Project Management Software. Gant Chart - New Product Launch Execution
Picture: Project — Working With Costs

Workflow Diagram

Sometimes it's difficult to find a path in work processes or to understand the requirements, especially when you are a newcomer. To get your thoughts straight, create a workflow diagram, and put everything on it. This will not only help you to get into the workflow, but also show it’s weaknesses. This illustration captures the workflow process of payment an invoice for the electricity consumed by certain enterprise. It was drawn in ConceptDraw PRO using its solution for Workflow Diagrams. Making a workflow charts means that you need to depict consistently all processes engaged to the workflow process. Then, you should connect them with symbols meaning study and analysis. Next, add symbols of decisions. A work flow diagram made precisely and correctly can help to clarify your work flow to any person.Workflow
Picture: Workflow Diagram
Related Solution:
1 Diagram Software
Professional business graphics tool for drawing schemes, diagrams and illustrating business documentation
1 Mind Map Software
Excellent tool for Mind Mapping, Planning, Brainstorming, and Building Processes
1 Project Management Software
The full complement of features needed to successfully plan and execute projects, including task and resource management, reporting, and change control