Driver Selection Reference Deck
Recall the tests and language for selecting an ABC cost driver.
Core test What is the fastest test for an ABC driver? Ask whether the driver moves when the activity work moves. If the activity doubles but the driver does not change, the driver is probably a proxy or wrong layer. Proxy vs driver Revenue vs disputed invoice count for invoice-resolution work Use revenue only when revenue genuinely drives the activity, not because it is easy. Objection "The causal driver is harder to collect. Can we use the available one?" A model review is drifting toward convenience. Your line We can use a proxy temporarily, but we should label it as…
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