Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

Exercise 12

ABC software is a critical component of an ABC system implementation. ABC software produces the results that will be used by decision makers. Thus, the capabilities of ABC software are extremely important. The choice of ABC software can have a dramatic effect on the success or failure of an organization's ABC initiative. Non-ERP companies may choose stand-alone ABC software packages. Depending on the size of the application, PC software may be adequate.
The emergence of ERP systems (and, of course, ERP software) is also having an effect on ABC software selection. ERP companies will not usually choose stand-alone ABC software. Essentially, ERP systems demand some form of integration. Two choices are available for achieving this integration:
1. An ERP system that has an add-on module.
2. ABC software that has linking and importing capabilities to establish a bridge between the two systems.
Required:
1. Using an Internet search, identify three stand-alone software packages that have the following features:
a. Windows 2000 or higher platform or Windows XP platform
b. ABC budgeting
c. Excel interface
d. Data export
e. Profit analysis
f. Resource, activity, and cost object modules and possibly more
After identifying software with the above features, which would you select? Why? Are there other important features that you read about that you would like to include as part of the selection criteria?
2. ERP and ABC vendors have joined forces in creating an ABC-ERP partnership. Search the Internet for two online articles that discuss ABC and ERP software issues. Write a brief summary of each article.