Authors: Alexander Baumeister, Markus Ilg
Combining mainstream software process models and activity based costing enables new and improved approaches to the financial management and control of software processes. A similarity-based approach is presented and a solution to one of the key problems, the sufficient size of the similarity database is given – by introducing the concept of normalized iteration types. It is shown how to generate normalized iterations as well as how
these have to be applied to calculate new software processes. Iteration signatures are defined and their application to form clusters of iterations as well as to easily search the database for similar iteration types is discussed. To further support management and control of projects up and running, ideas taken from the earned value method are adopted.
Keywords: management accounting; activity based costing; earned value method; iterative software processes; unified process; agile software development