From the course: Activity-Based Costing
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Defining data needs
From the course: Activity-Based Costing
Defining data needs
- Now, where am I going to source all the data I need for my activity-based costing model? This is a common concern for people who aren't overly familiar with ABC, and even for many that are. But over time, I've discovered a lot of commonality with ABC data that I'd like to share with you now. To help understand ABC data, I find it best to focus on each step of the ABC process. Step one of activity-based costing is known as a cost pool analysis. This is where we try to understand more about the type of activities that make up an organization's overheads. Now, it doesn't really matter what type of business you're performing an ABC for. The types of information or data to look for will include the following. An organizational chart, preferably broken down into different teams for the different overhead areas. A finance report. Ideally, this would be broken down into cost centers and general ledger codes. And, lastly, an activity report showing the tasks that staff in these overhead…
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