This module is essential if you are using Activity Based Cost (ABC) methodology for managing the production floor.   The information entered here forwards to Production Work Center/Activity Setup.  Then both setups are used in the MANEX Capacity Planning module. 

Activity Costing and Activity Volume Type Description setup is a requirement only if your company is employing Activity Based Cost (ABC) methodology for managing the production floor. The Activity Costing and Activity Volume Type Descriptions are used in Production Work Center/Activity setup to assign Activity Costs and Activity Volume Types to a production Work Center/Activity.  The Activity Volume Type Description is a pre-requisite for Production Work Centers & Activities / Activity Setup & Run tab.

Your company should become knowledgeable about the principles of ABC prior to using Activity Costing and Activity Volume Type Descriptions.Activity Cost and Volume types allow the users to define the costs and capacity for individual activities within a work center.  It is used in the capacity planning module to determine available and required capacities.    It is also used to assign costs of operation.  For example, there may be several machines that can do the same job in a work center.  However, one may have a higher operating cost, but also greater capacity.  Both machines can be displayed as a resource.  The selection of the machine is performed in the routing and capacity modules.