Strategic re-orientation of the chemical industry with activity-based costing under a value-oriented management system

Summary form only given. Process organization, which has been under discussion since the mid-1980s, is now being implemented in practice and allows an integrated approach to value creation processes beyond the borders of corporate and functional areas. One of its most important tools is activity-based costing, a method which creates cost transparency even for indirect areas of overheads and which integrates these into cost-oriented control over management processes. This article presents the results of a conceptional study of the introduction and application of process costing at a company in the chemical industry, with special consideration of computerized support provided by standard software. At the Huels AG this standard software is SAP R/3. The translation of our method into action will create the base for a value oriented and value added business activity. We prognosticate that the companies which ignore this development will lose their independence in the longer term