Posts Tagged ‘activity analysis’

Fake Cost Drivers for Administrative Overhead

A recent discussion in an online cost modeling forum related to “Which cost drivers can you use to assign administration overheads to a wide product range in a manufacturing concern.” As the discussion evolved, one response said “it is best done through the driver of turnover of the product produced. … because the efforts of […]


Non Value-Adding Activities – A Great Concept Comes With Hurdles

The central power of Activity-Based Costing is the activity. An activity is the work that people do in the company. An activity is a key link between resources, represented by what we spend, and products or services that we sell, represented by revenue.