services. Collect data – Collecting data where the diagram shows operational relationship. Build a software model, validate and reconcile. Interpret results and prepare management reports. Integrate data collection and reporting. Public sector usage When ABC is reportedly used in the public administration sector, the reported studies do not provide evidence about the success of methodology beyond justification of budgeting practise and existing service management and strategies. Usage in the US Marine Corps started in 1999. Use of ABC by the UK Police has been mandated since the 2003-04 UK tax year as part of England and Wales' National Policing Plan, specifically the Policing Performance Assessment Framework. Integrating EVA and process based costing Recently, Mocciaro Li Destri, Picone & Minà (2012) proposed a performance and cost measurement system that integrates the economic value added (EVA) criteria with process based costing (PBC). Authors note that activity-based costing system is introspective and focuses on a level of analysis which is too low. On the other hand, they underscore the importance to consider the cost of capital in order to bring strategy back into performance measures. Limitations Applicability of ABC is bound to cost of required data capture. That drives the prevalence to slow processes in services and administrations, where staff time consumed per task defines a dominant portion of cost. Hence the reported application for production tasks do not appear as a favorized scenario. Treating fixed costs as variable The potential problem with ABC, like other cost allocation approaches, is that it essentially treats fixed costs as if they were variable. This can, without proper understanding, give some people an inaccurate understanding which can then lead to poor decision making. For example, allocating PPE to individual products, may lead to discontinuation of products that seem unprofitable after the allocation, even if in fact their discontinuation will negatively affect the bottom line. Tracing costs Even in ABC, some overhead costs are difficult to assign to products and customers, such as the chief executive's salary. These costs are termed 'business sustaining' and are not assigned to products and customers because there is no meaningful method. This lump of unallocated overhead costs must nevertheless be met by contributions from each of the products, but it is not as large as the overhead costs before ABC is employed. Although some may argue that costs untraceable to activities should be "arbitrarily allocated" to products, it is important to