• Combines cost of cross functional activities
• Uses Activity Based Costing as a basis
• Usually 4-8 major cross functional operating processes
  • Create service/manufacture product
  • Market & sell
  • Acquire supplies/raw material
  • Invoice and Collect
• Support processes include
  • Produce and distribute information
  • Hire & train employees
  • Provide communications service
  • Provide computer services
  • Provide facilities

Financial statements would report cross functional business processes cost rather than traditional department costs. 

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