Previous	Next		Contents	Index	Glossary	Library

The financial community has not completely accepted activity-based costing, and as a result, companies rarely use it for external reporting, such as Security and Exchange Commission reports, and financial statements.

You can use General Ledger as part of an activity-based cost model. This includes allocating resources and reallocating resource balances to activities. Using Cost Management, you can assign activity costs to your products and report on activity-based product costs.

Using General Ledger and the budget process, you can create resources and activities, perform allocations from general ledger actual balances to resources, and then perform secondary allocations to activities. Since you may have multiple budgets, General Ledger supports multiple sets of activity-based costs.

Using mass budgeting allocations, you can allocate general ledger balances to your resources and allocate resource balances to your activities.