Activity-Based Costing

Activity-based costing refers to the practice of building up total 'transaction costs' or 'process costs' from the costs of the individual Activity that make up the Process. This can be useful in Business Process Outsourcing situations where a supplier may be paid and have SLAs evaluated on a per transaction basis.

The way this is expressed in TIBCO Business Studio is by assigning a Participant to an Activity. You then assign the Participant a unit cost, and the Activity a duration. TIBCO Business Studio calculates the Activity cost (the Activity duration multiplied by the Participant unit cost) and displays this on the Simulation tab of the Properties view of the Activity.

You can generate different reports from the simulation that include activity-based costing data, including participant cost, activity cost and end-to-end process cost (see Creating and Viewing a Simulation Report).