KEY INITIATIVE:
ACTIVITY-BASED COSTING

Organizational Priority #2

Optimize performance of management and support functions to assure efficiency
and administrative integrity of operations.

Leader(s)

Michele Lagana, Daniel Rinehuls

Collaborators

Office of Financial Resources Management, Information Systems, Protocol
Mapping Team

Description

As a result of a needs assessment by Arthur Andersen, the CC is implementing an activity-based cost (ABC) system. The objectives of the ABC implementation are to identify the costs and volumes of high-level services provided in support of Institute protocols. Phase I will serve as the baseline model representing FY 1998 costs and outputs.

Accomplishments-to-Date

• Hired ABC expert
• Evaluation and selection of commercial ABC software
• Identification of clinical volumes for Institute planning meetings
• ABC training for Implementation Team, Department Managers, and key section managers
• Identification of FY 1998 costs by CC department and object class
• Development of CC Activity Dictionary
• Current Objective: Assignment of departmental costs to activities

FY2000 Goals

• Definition of cost objects and reporting format
• Assignment of activities to cost objects
• Identify FY 1999 CC costs