Thursday, January 29, 2009

Connect the Dots - Activity Based Costing (ABC) and Web Computing

Wow, this Obama guy really is promoting change....2 posts about accounting in less than 2 weeks!!  

This article shows how a software developer created a model that leverages cloud computing (Google AppsEngine, Amazon S3, Twitter), which is driving new computing and business models, and embedded Activity Based Costing (ABC).  ABC is one of the early focus areas of our MgmtAcct class this semester.

So instead of having silos between the production groups and the accounting groups, it's tightly integrated via software that is open to all developers and all customers.  

While this is a small example, it does create an interesting blurring between IT, Ops/Production and  Accounting, especially when you start thinking about the business opportunities that happen when companies leverage the cloud and open development environments.