Glossary

Resource Consumption Accounting

A detailed system analysis of the nature and behavior of resources. We place dollars behind resources, but we do not place dollars on activities, thus it only makes sense to track resources rather than activities (Activity Based Cost System) Resource Consumption Accounting introduces ways to measure and manage capacity, which leads to better management of limited assets. Resource Consumption Accounting also uses "mapping" to identify resources with processes and activities. Resource Consumption Accounting defines resource pools (similar to Activity Based Cost System activity pools) so that "families" having similar technologies, machinery, etc, can be grouped together.