TDABC Formula Reference Deck
Recall the core TDABC formulas and interpretation rules.
Formula What is the TDABC transaction-cost formula? Transaction cost = capacity cost rate x time required. The time required can be a base time plus add-ons for complexity. Capacity rate How do you calculate capacity cost rate? Cost of supplying capacity divided by practical capacity time. Use practical capacity so normal availability constraints are not ignored. Capacity treatment Used capacity vs unused capacity Do not bury unused capacity in transaction cost when the decision needs capacity visibility. Objection "Why not just average the department cost across all transactions?" A manager wants one simple rate. Your line An average hides complexity.…
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