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FullCost Software and Planning Process.... NDMA Inc.: FullCost Software and Planning Process
operational planning, product/service catalog, costing, activity-based budgeting, and rate setting
Know your cost of services!
FullCost [TM] is a software solution -- overlaid on a set of Excel [R] spreadsheets -- and a business planning process that calculates the true, full costs to shareholders/taxpayers/donors of your organization's products and services.
All costs are fully burdened with their fair share of indirects (fixed) costs and overhead.
FullCost is a second-generation costing model, and complies with generally accepted accounting principles (GAAP).
The difference between first- and second-generation costing models....
FullCost is used for:
* Business planning, tactical planning, operational planning.
Why it's important to integrate operational planning, budgeting, and rate setting....
* Product/service catalog development (with costs), product profitability analysis.
* Budgeting, service costing or service-based costing (ITIL recommended), activity-based budgeting (ABB), activity-based costing, zero-based budgeting (ZBB), driver-based budgeting, scenario-based budgeting. In government, these concepts are termed performance-based budgeting (PBB).
What is ABB, and how is it different from ABC?....
Why it's important to present a budget for products/services as well as for traditional expense codes....
* Allocations of costs.
Why fair allocations require that you know your full costs....
* Rate-setting, pricing -- for chargebacks, costing new business during the budget year, and competitive benchmarking.
Why setting rates requires that you know your full costs....
FullCost is not a financial accounting system. It's a highly interactive planning tool used during the budget preparation and negotiation process, prior to finalizing the numbers that then feed the accounting systems.
More on the difference between planning and tracking systems....
More on the software....
FullCost comes with a practical, comprehensive, consistent, step-by-step manual that walks an organization through the service catalog, business planning, budget preparation, and rate-setting process.
More on the planning process....
Note to our old friends: The development version of FullCost was named Budget-by-Deliverables[R].
FullCost satisfies the requirements of all levels of the Full-cost Maturity Model (FMM). It also implements fundamental components of ITIL Financial Management processes.
IMPACT
How FullCost changes the budget process
"My organization had been under-spending on information technology for years. With FullCost, at a time where other budgets were shrinking, my budget actually went up because clients favored the new process and were able to defend their worthwhile investments."
Lew Davison, CIO, Missouri Highway and Transportation Department
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"I definitely would recommend FullCost to any organization where demand outstrips the corporation's ability to pay for it.... It really does align your resources to the strategic goals of the organization."
Robert Bender, CIO, SMDC Health System
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"My budget is now much more realistic. [FullCost] has made the institution aware of what services we deliver and how much each of those services cost to deliver."
Dr. Joyce A. Mitchell, Associate Dean, University of Missouri Health Services
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"We continue to find ways of using the FullCost methodologies to better understand and manage our lines of business. FullCost has enabled us to run our business more efficiently and effectively."
Matt Frymire
CIO, Riverside County, California
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"All I was finding was different ways of making the same mistakes we were making.... If I hadn't found FullCost, we wouldn't have made the investment in a product that does what we already were doing."
Doug Volesky
Montana Information Technology Services Division
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FREQUENTLY ASKED QUESTIONS
about FullCost, activity-based budgeting, costing, and rate-setting
PARTNERS PROGRAM
How FullCost can help consultants, accountants, VARs, and software vendors
Related Topics....
managing expectations, cost cutting, portfolio management, outsourcing, chargebacks, resource governance
How NDMA can help
Software
Consulting
Publications
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Start simple and grow
NEXT STEPS
FullCost is designed to be implemented in stages and to different levels of detail, depending on your needs. This allows many of the benefits to be quickly and readily attained, and then more benefits can be realized in subsequent years as the process evolves.
The first step in planning a FullCost implementation is to decide your target level of implementation, using the Full-cost Maturity Model (FMM). Then, the implementation process can be customized to your needs.
Contact us for a free one-hour telephone consultation on your objectives and how the implementation process would be customized to suit your requirements.
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