ACTIVITY-BASED-COSTING5 MIN READ
Build a Cost Pool Without a Junk Drawer
Build an activity cost pool with a clear boundary, driver, and management purpose.
The messy pool The current pool combines four different customer-support activities and assigns them by revenue. If the pool stays vague, every later driver choice will be a compromise. Boundary before allocation SIPOC -> activity pool -> driver Use process boundaries to decide what belongs together before assigning cost. Junk drawer Department total with mixed activities One pool, one driver, one management action. Split when the driver, owner, or action changes. 01 Boundary 02 Group 03 Driver Step 1 You need to define what the pool covers.
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