Activity Based Costing as a tool for knowledge management to libraries

Abstract

Activity Based Costing is a method to create a large view on services, work and activities, costs and resources and their interactive relations. The costs are allocated to the activities by the use. After that, the costs are allocated further to services by the consumption.

Costs of the library services are often evaluated by direct indicators, like euros/loan etc. These indicators do not unveil the complexity of the system. Some services may have been considered too cheap, some too expensive. The decision-making do not base on a realistic view on the costs of different services and the structure of indirect costs.

The poster will visualize the activity based costing model for the library environment. The poster tells how any kind and any size of libraries could apply the model. It will help the library to combine services and process indicators, and the budgetary information into one model.

Activity based costing can help the library staff, managers, and stakeholders to see the library's costs structure in a realistic way. Which services make good results in relation to the costs, which services do not?