Definition: Assigning expenses to specific outsourcing activities or tasks rather than using monthly fees or retainers. Activity-based pricing ensures firms only pay for actual work performed.
Example: An example of activity-based pricing is accounts payable outsourcing in which clients pay for every invoice processed. The client would pay more during a high-volume month and less during a low-volume month as opposed to a fixed monthly fee or fixed hourly rate.
Explore IVP Shadow Accounting Services
Activity-based pricing is a key feature of IVP Shadow Accounting Services. This service empowers hedge funds and asset managers to seamlessly outsource comprehensive or partial accounting functions, enhancing operational efficiency and scalability. It accommodates a variety of funds and accounting software, catering specifically to funds employing intricate investment strategies that extend the conventional shadow accounting timeline.
