Simple ABC Model

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Cost Model for Data Management Center (DMC)

Main Menu

IntroductionThis workbook was developed to assist the Data Management Center (DMC) in gaining better insights behind the

In order to better understand costs, the following steps were taken to develop this spreadsheet model

!. Identif" all of the resources available to DMC and the associated costs of the resources (personnel, e#uipment,

$. Identif" all of the ma%or activities of DMC such as setting up I& addresses, installing network e#uipment, etc.

'. Map a relationship between the resources and activities referred to as *esource Drivers (allocates costs to

+. Map a relationship between the activities and cost ob%ects referred to as ctivit" Drivers (allocates activit" co

-. Determine the costs of each service, product or whatever "ou consider "our cost ob%ect within the model.

ince cost data, activities, and other attributes change, this model should be reviewed and updated at least once

Data /ntr" Cell 0

Tab Description &urpose

! tarting point for using this cost model

$ ome background information on how this model works

' Identif" resource pools and their related costs as a starti

+ Identif" and describe the ke" activities performed b" the

- 1ased on anal"sis, determine the output metrics for allo

2 Identif" and describe the cost ob%ects that DMC wants to

3 *eport of costs b" cost ob%ects

4 5lossar" of terms used related to this cost model

Point of Contact

Matt 6. /vans

Main Menu

7verview

Main Menu

7verview

*esource &ools (tep !)

ctivit" Costing (tep $)

ctivit" Drivers (tep ')

Cost 7b%ects (tep +)

8inal *eport (tep -)

5lossar"

www.e9infm.com

http://www.exinfm.com/

http://www.exinfm.com/



cost of operations.

, etc.)

e" activities)

st to "our services)

a "ear.

g point for the model

Data Management Center

ating the costs

use

*esource &ools ctivit" Drivers 8inal *eport

ctivit" Costing Cost 7b%ects 5lossar"




Overview of Model

Purpose

The purpose of this model is to allocate costs. This model is based on the principle that activities incurconsumption of resources. s end users demand products or services, activities must be performed.

How are Costs Allocated?The model uses a two step process to allocate costs

have identified the actual costs, then "ou have to determine how to allocate all of these costs (resourc

are performed b" the department (or whatever domain "ou are building the model to). :abor costs ar

looking at the percentage of time people spend on various activities.

different service lines "ou perform for customers). 8or e9ample, the number of help desk tickets procedriver to allocate costs from the help desk activit" to help desk support costs.

How do I use the Model?The model can help a department understand the following

;hat is the true costs of the services we are providing to our customers<

6ow much should we charge customers for the cost of our services<

;hat are low and high priorit" activities in terms of funding

How do I use the information in this Model?

=ou want to ke"in on what "our ctivit" Costs are and also look at those activities that ma" not be linkcustomers. 8or e9ample, if "ou have significant costs for nonvalue added activities (not close to the c

"ou might want to pursue more lean approaches to incurring these costs. 8or e9ample, if "ou are forc

"our costs, then "ou would not want to cut activities ver" close to the customer. lso, "ou can e9press

costs in terms of >nit Costs. This is a common benchmark for reducing "our costs over time.

How do I update ! maintain the Model?The following inputs to this model ma" re#uire updating

! ctual Costs for *esources

1ased on invoices, 5eneral :edger *eports and other sources, the actual costs as of a cu

change. 8or e9ample, newl" awarded contracts, e9pansion of staffing resources, and instae#uipment will change the current costs captured for resources on tab ' of this model.

$ ctivities &erformed

1ased on changes in what a department does, the activities on tab + ma" change. 8or e9a

department discontinues a ke" service or starts providing a new service, then this model w

updating.

' llocation of *esources (*esource Drivers)

If resources change or activities change, then "ou will need to update the resource drivers

allocating the costs between the resources and the activities. dditionall", it is a good idea

current allocations used since people ma" shift in how much time the" spend on an activit

+ ?ew ctivities *e#uire ?ew Drivers and Cost 7b%ects

"tep #$ =ou have to pull actual costs (what was spent) per the most reliable source, such as the 5ene

"tep % 7nce "ou understand the costs b" activities, then "ou need to allocate these costs to "our cos



In the event a department begins offering a new service to a customer, this will re#uire reb

model to include new resource costs, drivers, activities, and cost ob%ects.

&hat are some rules to follow in 'uilding the Model?

!

:edger since this is the official s"stem of record for costs.

$

in order to keep the model simple and manageable.

'

group all of these activities together and allocate using a single driver such as direct labor

:ink to 5eneral :edger ;here practical, tr" to obtain and balance "our cost data directl"

&rioriti@e the ctivities If the number of activities is greater than ten, "ou ma" want to focu

5roup ?on Traceable ctivities ome activities are difficult to trace back to specific resou



costs through the

es) to the activities that

t"picall" allocated b"

ssed is an output

ed toustomer), then

d to reduce

"our

off period will most likel"

llation of new

mple, if a

ill re#uire

involved in

to validate the

.

Main Menu *esource &ools ctivit" Drivers 8inal *eport

7verview ctivit" Costing Cost 7b%ects 5lossar"

ral :edger. 7nce "ou

t ob%ects (such as the



uilding the

ost.

ith the 5eneral

s on the vital few activities

rce pools. Ma" want to




esource Pools

PurposeThe purpose of this worksheet is to identif" and capture all of the resources and their associated c

starting point in allocating costs to activities. This is the baseline for developing the rest of the mod

Instructions recommended practice is to determine the total costs of running the department for one full mont

resource pools that are linked to specific services or activities. =ou ma" have to start b" listing all o

department and then group them together based on what the" do.

"tep # Capture the total overall costs for each resource pool

Actual

Resource Pool Costs

'.! ?etwork /ngineers !AA,AAA Detail Cost chedule a'.$ Database dministrators !$-,AAA Detail Cost chedule a

'.' 7perational Management 24,-AA Detail Cost chedule a

'.+ ervice upport B 6elp Desk $$-,AAA endor Invoices and 5

'.- 6ardware and /#uipment 34,!AA Inventor" Control *eco

'.2 /9ternal B Indirect Costs -3,!AA nal"sis with ub%ect

'.3

'.4

'.

'.!A

Total Cost ccounted 8or in this Model 2-',3AA 4-E

Total Cost Incurred for 1aseline &eriod 33A,AAA !AAE

Cost ?ot ccounted 8or in this Model !!2,'AA !-E

"tep % If possi'le* tr+ to 'rea,down the Actual Costs per a'ove into components s

e-uipment* and indirect cost since each of these components might have to get allNOTE: The template below is setup for three components - feel free to modify as needed for a goo

Actual Direct Labor Costs

Resource Pool Costs '.n.!

'.! ?etwork /ngineers !AA,AAA !AA,AAA

'.$ Database dministrators !$-,AAA !AA,AAA

'.' 7perational Management 24,-AA 24,-AA

'.+ ervice upport B 6elp Desk $$-,AAA !A,AAA

'.- 6ardware and /#uipment 34,!AA A

'.2 /9ternal B Indirect Costs -3,!AA A'.3 A A A

'.4 A A A

'. A A A

'.!A A A A



sts. This represents an important

l.

h and break out this costs into

the personnel assigned to the

Time

Frame

nd 5eneral :edger *eports FulA3nd 5eneral :edger *eports FulA3

nd 5eneral :edger *eports FulA3

eneral :edger *eports FulA3

rds and 5eneral :edger *eports FulA3

atter /9perts FulA3

uch as la'or*

cated differentl+cost allocation.

Equipment Indirect Costs Out of Balance

'.n.$ '.n.' Amount

A A A

A $-,AAA A

A A A

A '-,AAA A

3A,!AA 4,AAA A

-A,!AA 3,AAA AA A A

A A A

A A A

A A A

A

Main Menu *esource &ools ctivit" Dri

7verview ctivit" Costing Cost 7b%e



ers 8inal *eport

ts 5lossar"




Activit+ Costing

Purpose

The purpose of this worksheet is to allocate "our resource pool costs (tab ') to a list of critical activities

InstructionsThere are two important steps to completing this worksheet

! Identif" and describe the various activities performed b" the resources in the Department.

Department should have a good overall understanding of department activitiesG such as e

1udget *e#uests, and Installing ?ew ?etwork Connections.

$ In order to allocate resource pool costs to activities, "ou will need to determine how person

personal interviews are often used to ascertain the proportion of time people spend on vari

"tep # .ist /e+ Activities1riefl" describe the ke" activities performed b" the Department. Tr" to keep this list to the main activitie

t the same time, the list should be complete enough to account for most of the resource costs spent

+.! Installation of ?etwork Connections and /#uipment

+.$ Trouble hoot ?etwork Connection &roblems

+.' Database 7ptimi@ation and Maintenance

+.- Data Migration and Integration

+.2 /nd >ser *eports and &rograms

+.3 trategic and *esource Management of Data

+.4

+.+.!A

"tep % 0or each activit+* allocate the resource pool costs across to each activit+

'.! ?etwork /ngineers

'.!.! !AA,AAA H llocation of Costs to ctivit" +.!

'.!.$ A llocation llocation

'.!.' A &ercent mount ctivit" ?ame

llocate '.!.! 0 $-E $-,AAA Installation of ?etwork Connectio

llocate '.!.$ 0 AE A Installation of ?etwork Connectio

llocate '.!.' 0 AE A Installation of ?etwork Connectio

ub Totals $-,AAAThe following should balance out to fully allocate your resource costs across all activities:

Total mount llocated '.!.! !AA,AAA Total &erce

Total mount llocated '.!.$ A Total &erce

Total mount llocated '.!.' A Total &erce

'.$ Database dministrators

'.$.! !AA,AAA H llocation of Costs to ctivit" +.!

'.$.$ A llocation llocation

'.$.' $-,AAA &ercent mount ctivit" ?ame

llocate '.$.! 0 AE A Installation of ?etwork Connectio

llocate '.$.$ 0 AE A Installation of ?etwork Connectio llocate '.$.' 0 AE A Installation of ?etwork Connectio



ub Totals A

The following should balance out to fully allocate your resource costs across all activities:

Total mount llocated '.$.! !AA,AAA Total &erce

Total mount llocated '.$.$ A Total &erce

Total mount llocated '.$.' $-,AAA Total &erce

'.' 7perational Management '.'.! 24,-AA H llocation of Costs to ctivit" +.!

'.'.$ A llocation llocation

'.'.' A &ercent mount ctivit" ?ame

llocate '.'.! 0 !AE 2,4-A Installation of ?etwork Connectio

llocate '.'.$ 0 AE A Installation of ?etwork Connectio

llocate '.'.' 0 AE A Installation of ?etwork Connectio

ub Totals 2,4-A


Total mount llocated '.'.! 24,-AA Total &erce

Total mount llocated '.'.$ A Total &erce

Total mount llocated '.'.' A Total &erce

'.+ ervice upport B 6elp Desk

'.+.! !A,AAA H llocation of Costs to ctivit" +.!

'.+.$ A llocation llocation

'.+.' '-,AAA &ercent mount ctivit" ?ame

llocate '.+.! 0 $AE '4,AAA Installation of ?etwork Connectio

llocate '.+.$ 0 AE A Installation of ?etwork Connectio

llocate '.+.' 0 -E !,3-A Installation of ?etwork Connectio

ub Totals ',3-A


Total mount llocated '.+.! !A,AAA Total &erce

Total mount llocated '.+.$ A Total &erceTotal mount llocated '.+.' '-,AAA Total &erce

'.- 6ardware and /#uipment

'.-.! A H llocation of Costs to ctivit" +.!

'.-.$ 3A,!AA llocation llocation

'.-.' 4,AAA &ercent mount ctivit" ?ame

llocate '.-.! 0 AE A Installation of ?etwork Connectio

llocate '.-.$ 0 3AE +,A3A Installation of ?etwork Connectio

llocate '.-.' 0 3AE -,2AA Installation of ?etwork Connectio

ub Totals -+,23A


Total mount llocated '.-.! A Total &erceTotal mount llocated '.-.$ 3A,!AA Total &erce

Total mount llocated '.-.' 4,AAA Total &erce

'.2 /9ternal B Indirect Costs

'.2.! A H llocation of Costs to ctivit" +.!

'.2.$ -A,!AA llocation llocation

'.2.' 3,AAA &ercent mount ctivit" ?ame

llocate '.2.! 0 AE A Installation of ?etwork Connectio

llocate '.2.$ 0 +AE $A,A+A Installation of ?etwork Connectio

llocate '.2.' 0 +AE $,4AA Installation of ?etwork Connectio

ub Totals $$,4+AThe following should balance out to fully allocate your resource costs across all activities:



Total mount llocated '.2.! A Total &erce

Total mount llocated '.2.$ -A,!AA Total &erce

Total mount llocated '.2.' 3,AAA Total &erce

'.3 A

'.3.! A H llocation of Costs to ctivit" +.!

'.3.$ A llocation llocation'.3.' A &ercent mount ctivit" ?ame


llocate '.3.$ 0 AE A Installation of ?etwork Connectio

llocate '.3.' 0 AE A Installation of ?etwork Connectio

ub Totals A



Total mount llocated '.3.$ A Total &erce

Total mount llocated '.3.' A Total &erce

'.4 A '.4.! A H llocation of Costs to ctivit" +.!

'.4.$ A llocation llocation

'.4.' A &ercent mount ctivit" ?ame


llocate '.4.$ 0 AE A Installation of ?etwork Connectio

llocate '.4.' 0 AE A Installation of ?etwork Connectio

ub Totals A



Total mount llocated '.4.$ A Total &erce

Total mount llocated '.4.' A Total &erce

'. A

'..! A H llocation of Costs to ctivit" +.!

'..$ A llocation llocation

'..' A &ercent mount ctivit" ?ame

llocate '..! 0 AE A Installation of ?etwork Connectio

llocate '..$ 0 AE A Installation of ?etwork Connectio

llocate '..' 0 AE A Installation of ?etwork Connectio

ub Totals A


Total mount llocated '..! A Total &erce

Total mount llocated '..$ A Total &erce

Total mount llocated '..' A Total &erce

'.!A A

'.!A.! A H llocation of Costs to ctivit" +.!

'.!A.$ A llocation llocation

'.!A.' A &ercent mount ctivit" ?ame

llocate '.!A.! 0 AE A Installation of ?etwork Connectio

llocate '.!A.$ 0 AE A Installation of ?etwork Connectio

llocate '.!A.' 0 AE A Installation of ?etwork Connectio

ub Totals A


Total mount llocated '.!A.! A Total &erceTotal mount llocated '.!A.$ A Total &erce



Total mount llocated '.!A.' A Total &erce

"tep 1 "ummari2e Activit+ Costs

+.! Installation of ?etwork Connections and /#uipment !+,!!A

+.$ Trouble hoot ?etwork Connection &roblems $A2,'!-

+.' Database 7ptimi@ation and Maintenance !+4,+A

+.+ Data Migration and Integration '',3$A

+.- /nd >ser *eports and &rograms 3+,4A

+.2 trategic and *esource Management of Data +A,3$-

+.3 A A

+.4 A A

+. A A

+.!A A A

3O3A. A..OCA34D CO"3" 2-',3AA

3O3A. CO"3" P4 3A5 1 2-',3AA

O63 O0 5A.A7C4 AMO673 A



performed b" the Department.

ub%ect Matter /9perts within the

ting >p I& ddresses, &rocessing

el spend their time. urve"s and

us activities.

s that are somehow linked to customers.

ach month b" the Department.

0 H llocation of Costs to ctivit" +.$ 0

llocation llocation

&ercent mount ctivit" ?ame

s and /#uipment '-E '-,AAA Trouble hoot ?etwork Connection &roblems

s and /#uipment AE A Trouble hoot ?etwork Connection &roblems


ub Totals '-,AAA

nt llocated '.!.! !AAE < Should add up to !!" if you are allocating any costs

nt llocated '.!.$ AE < Should add up to !!" if you are allocating any costs

nt llocated '.!.' AE < Should add up to !!" if you are allocating any costs


llocation llocation



s and /#uipment AE A Trouble hoot ?etwork Connection &roblemss and /#uipment AE A Trouble hoot ?etwork Connection &roblems

Main Menu *esource &ools ctivit" Dri

7verview ctivit" Costing Cost 7b%ec



ub Totals A

nt llocated '.$.! !AAE < Should add up to !!" if you are allocating any costs

nt llocated '.$.$ AE < Should add up to !!" if you are allocating any costs

nt llocated '.$.' !AAE < Should add up to !!" if you are allocating any costs


llocation llocation


s and /#uipment $AE !',3AA Trouble hoot ?etwork Connection &roblems



ub Totals !',3AA

nt llocated '.'.! !AAE < Should add up to !!" if you are allocating any costs

nt llocated '.'.$ AE < Should add up to !!" if you are allocating any costs

nt llocated '.'.' AE < Should add up to !!" if you are allocating any costs


llocation llocation


s and /#uipment 2-E !$',-AA Trouble hoot ?etwork Connection &roblems


s and /#uipment 3AE $+,-AA Trouble hoot ?etwork Connection &roblems

ub Totals !+4,AAA

nt llocated '.+.! !AAE < Should add up to !!" if you are allocating any costs

nt llocated '.+.$ AE < Should add up to !!" if you are allocating any costs nt llocated '.+.' !AAE < Should add up to !!" if you are allocating any costs


llocation llocation



s and /#uipment -E ',-A- Trouble hoot ?etwork Connection &roblems

s and /#uipment -E +AA Trouble hoot ?etwork Connection &roblems

ub Totals ',A-

nt llocated '.-.! AE < Should add up to !!" if you are allocating any costs

nt llocated '.-.$ !AAE < Should add up to !!" if you are allocating any costs

nt llocated '.-.' !AAE < Should add up to !!" if you are allocating any costs


llocation llocation



s and /#uipment !AE -,A!A Trouble hoot ?etwork Connection &roblems

s and /#uipment !AE 3AA Trouble hoot ?etwork Connection &roblems

ub Totals -,3!A



nt llocated '.2.! AE < Should add up to !!" if you are allocating any costs

nt llocated '.2.$ !AAE < Should add up to !!" if you are allocating any costs

nt llocated '.2.' !AAE < Should add up to !!" if you are allocating any costs


llocation llocation&ercent mount ctivit" ?ame




ub Totals A


nt llocated '.3.$ AE < Should add up to !!" if you are allocating any costs

nt llocated '.3.' AE < Should add up to !!" if you are allocating any costs


llocation llocation





ub Totals A


nt llocated '.4.$ AE < Should add up to !!" if you are allocating any costs

nt llocated '.4.' AE < Should add up to !!" if you are allocating any costs


llocation llocation





ub Totals A

nt llocated '..! AE < Should add up to !!" if you are allocating any costs

nt llocated '..$ AE < Should add up to !!" if you are allocating any costs

nt llocated '..' AE < Should add up to !!" if you are allocating any costs


llocation llocation





ub Totals A

nt llocated '.!A.! AE < Should add up to !!" if you are allocating any costs nt llocated '.!A.$ AE < Should add up to !!" if you are allocating any costs



nt llocated '.!A.' AE < Should add up to !!" if you are allocating any costs

#lace into

Single $ell

+.! !+,!!A

+.$ $A2,'!-

+.' !+4,+A

+.+ '',3$A

+.- 3+,4A

+.2 +A,3$-

+.3 A

+.4 A

+. A

+.!A A

2-',3AA



H llocation of Costs to ctivit" +.' 0 H

llocation llocation llocation

&ercent mount ctivit" ?ame &ercent

-E -,AAA Database 7ptimi@ation and Maintenance !AE

AE A Database 7ptimi@ation and Maintenance AE


ub Totals -,AAA ub Totals




4-E 4-,AAA Database 7ptimi@ation and Maintenance !AE

AE A Database 7ptimi@ation and Maintenance AE4-E $!,$-A Database 7ptimi@ation and Maintenance -E

ers 8inal *eport

ts 5lossar"



ub Totals !A2,$-A ub Totals




!AE 2,4-A Database 7ptimi@ation and Maintenance AE



ub Totals 2,4-A ub Totals




$E ',4AA Database 7ptimi@ation and Maintenance AE



ub Totals ',4AA ub Totals





$AE !+,A$A Database 7ptimi@ation and Maintenance -E

$AE !,2AA Database 7ptimi@ation and Maintenance -E

ub Totals !-,2$A ub Totals





$AE !A,A$A Database 7ptimi@ation and Maintenance !-E

$AE !,+AA Database 7ptimi@ation and Maintenance !-E

ub Totals !!,+$A ub Totals




llocation llocation llocation&ercent mount ctivit" ?ame &ercent




ub Totals A ub Totals
























llocation of Costs to ctivit" +.+ 0 H lloc


mount ctivit" ?ame &ercent mount

!A,AAA Data Migration and Integration $AE $A,AAA

A Data Migration and Integration AE A


!A,AAA ub Totals $A,AAA




!A,AAA Data Migration and Integration -E -,AAA

A Data Migration and Integration AE A!,$-A Data Migration and Integration -E !,$-A



!!,$-A ub Totals 2,$-A




A Data Migration and Integration !-E !A,$3-



A ub Totals !A,$3-




A Data Migration and Integration !$E $$,4AA


A Data Migration and Integration $AE 3,AAA

A ub Totals $,4AA





',-A- Data Migration and Integration AE A

+AA Data Migration and Integration AE A

',A- ub Totals A





3,-!- Data Migration and Integration !-E 3,-!-

!,A-A Data Migration and Integration !-E !,A-A

4,-2- ub Totals 4,-2-




llocation llocation llocation mount ctivit" ?ame &ercent mount




A ub Totals A







A ub Totals A







A ub Totals A







A ub Totals A



tion of Costs to ctivit" +.- 0 H llocation of Costs to ctivit

llocation llocation

ctivit" ?ame &ercent mount ctiv

/nd >ser *eports and &rograms -E -,AAA trategic and *esourc

/nd >ser *eports and &rograms AE A trategic and *esourc


ub Totals -,AAA


llocation llocation



/nd >ser *eports and &rograms AE A trategic and *esourc/nd >ser *eports and &rograms -E !,$-A trategic and *esourc



ub Totals !,$-A


llocation llocation


/nd >ser *eports and &rograms +-E 'A,4$- trategic and *esourc



ub Totals 'A,4$-


llocation llocation


/nd >ser *eports and &rograms !E !,AA trategic and *esourc


/nd >ser *eports and &rograms -E !,3-A trategic and *esourc

ub Totals ',2-A


llocation llocation





ub Totals A


llocation llocation





ub Totals A




llocation llocation ctivit" ?ame &ercent mount ctiv




ub Totals A


llocation llocation





ub Totals A


llocation llocation





ub Totals A


llocation llocation





ub Totals A



+.2 0 H llocation of Costs to ctivit" +.3

llocation llocation

it" ?ame &ercent mount ctivit" ?ame

e Management of Data AE A



ub Totals A


llocation llocation



e Management of Data AE Ae Management of Data AE A



ub Totals A


llocation llocation





ub Totals A


llocation llocation





ub Totals A


llocation llocation





ub Totals A


llocation llocation





ub Totals A




llocation llocationit" ?ame &ercent mount ctivit" ?ame




ub Totals A


llocation llocation





ub Totals A


llocation llocation





ub Totals A


llocation llocation





ub Totals A



0 H llocation of Costs to ctivit" +.4 0 H



A AE A A AE

A AE A A AE

A AE A A AE





A AE A A AE

A AE A A AEA AE A A AE







A AE A A AE

A AE A A AE

A AE A A AE





A AE A A AE

A AE A A AE

A AE A A AE





A AE A A AE

A AE A A AE

A AE A A AE





A AE A A AE

A AE A A AE

A AE A A AE





llocation llocation llocation&ercent mount ctivit" ?ame &ercent

A AE A A AE

A AE A A AE

A AE A A AE





A AE A A AE

A AE A A AE

A AE A A AE





A AE A A AE

A AE A A AE

A AE A A AE





A AE A A AE

A AE A A AE

A AE A A AE




llocation of Costs to ctivit" +. 0 H llo



A A AE A

A A AE A

A A AE A

A ub Totals A




A A AE A

A A AE AA A AE A



A ub Totals A




A A AE A

A A AE A

A A AE A

A ub Totals A




A A AE A

A A AE A

A A AE A

A ub Totals A




A A AE A

A A AE A

A A AE A

A ub Totals A




A A AE A

A A AE A

A A AE A

A ub Totals A




llocation llocation llocation mount ctivit" ?ame &ercent mount

A A AE A

A A AE A

A A AE A

A ub Totals A




A A AE A

A A AE A

A A AE A

A ub Totals A




A A AE A

A A AE A

A A AE A

A ub Totals A




A A AE A

A A AE A

A A AE A

A ub Totals A



cation of Costs to ctivit" +.!A 0

ctivit" ?ame

A

A

A


ctivit" ?ame

A

AA




ctivit" ?ame

A

A

A


ctivit" ?ame

A

A

A


ctivit" ?ame

A

A

A


ctivit" ?ame

A

A

A




Activit+ Drivers

PurposeThe purpose of this worksheet is to identif" and capture a driver that can be used to allocate the ct

cost ob%ects that the department wants to use for control over costs. These activit" drivers will also h

which will be used to help benchmark costs over future periods. If the Cost 7b%ect is the same as "o

do not need to complete Tab 2 Cost 7b%ects.

"tep # Identif+ the output metric that can used to drive and allocate activit+ costs

Activities per Tab

+.! Installation of ?etwork Connections and /#uipment ?umber of Installations

+.$ Trouble hoot ?etwork Connection &roblems ?umber of 6elp Desk Tickets

+.' Database 7ptimi@ation and Maintenance ?umber of Database ;ork 7rder

+.+ Data Migration and Integration ?umber of Data Transfer &ro%ects

+.- /nd >ser *eports and &rograms ?umber of >ser Development *e+.2 trategic and *esource Management of Data ?umber of >ni#ue Data *eposito

+.3 A

+.4 A

+. A

+.!A A

"tep % &here applica'le and measura'le* convert +our costs into hourl+ rates 'ase

Total !ours Total

Activit" #olume per $nit !ours

-.! Installation of ?etwork Connections and /#uipment - '- !3--.$ Trouble hoot ?etwork Connection &roblems !'- $ $3A

-.' >?1:/ T7 M/>*/

-.+ >?1:/ T7 M/>*/

-.- /nd >ser *eports and &rograms $ 'A 2A

-.2 >?1:/ T7 M/>*/

-.3

-.4

-.

-.!A

Output %etric &Activit" D



ivit" Costs per Tab + to

elp calculate unit cost

ur activities, then "ou

Total $nit Total

$nits Cost Cost

- $,4$$ !+,!!A

!'- !,-$4 $A2,'!-

2 $+,4$' !+4,+A

$ !2,42A '',3$A

#uests $ '3,++- 3+,4Aies + !A,!4! +A,3$-

:>/J A

:>/J A

:>/J A

:>/J A

3otal 2-',3AA

d on time involved8

Cost per Cost per

Above !ours

$,4$$ K !3A.+!!,-$4 K -.22

'3,++- K 2$+.A4

Main Menu *esource &ools

7verview ctivit" Costing

iver'



ctivit" Drivers 8inal *eport

Cost 7b%ects 5lossar"




Cost O'9ects

PurposeThe purpose of this worksheet is to describe each of the cost ob%ects that the department wants to us

managing costs. Cost ob%ects ma" differ from "our activities since the" can represent an"thing for whi

want to measure costs. If "our activities represent "our cost ob%ects, then "ou do not have to complete

"tep # Identif+ Cost O'9ects for 4ach Activit+ and if different* then allocate the

activit+ costs and identif+ the driver used for measuring the Cost O'9ect

Activit" ( of Time

Ref Activit" ) Cost Ob*ect Cost +pent On

+.! Installation of ?etwork Connections and /#uipment !+,!!A

2.+.!.! ?ew ?etwork Taps !-E

2.+.!.$ etup :ocal rea ?etworks *emote ites 4-E

2.+.!.'2.+.!.+

2.+.!.-

Totals !AAE

Activit" ( of Time

Cost +pent On

+.$ Trouble hoot ?etwork Connection &roblems $A2,'!-

2.+.$.! CTIITI/ >/D 87* C7T 71F/CT

2.+.$.$ */8/* 1CL T7 T/& ' B T1 +

2.+.$.'

2.+.$.+

2.+.$.-Totals AE

Activit" ( of Time

Cost +pent On

+.' Database 7ptimi@ation and Maintenance !+4,+A

2.+.'.! *outine cheduled Maintenance 2-E

2.+.'.$ >nscheduled 8i9es and 1ugs '-E

2.+.'.'

2.+.'.+

2.+.'.-

Totals !AAE

Activit" ( of Time

Cost +pent On

+.+ Data Migration and Integration '',3$A

2.+.+.! Design Develop Interfaces +AE

2.+.+.$ Data /9tract B Transform B :oads (/T:) 2AE

2.+.+.'

2.+.+.+

2.+.+.-



Totals !AAE

Activit" ( of Time

Cost +pent On

+.- /nd >ser *eports and &rograms 3+,4A

2.+.-.! 7ne Time d 6oc *e#uests 3AE

2.+.-.$ ?ew 8unctional &rocedure 'AE2.+.-.'

2.+.-.+

2.+.-.-

Totals !AAE

Activit" ( of Time

Cost +pent On

+.2 trategic and *esource Management of Data +A,3$-

2.+.2.! CTIITI/ >/D 87* C7T 71F/CT

2.+.2.$ */8/* 1CL T7 T/& ' B T1 +

2.+.2.'

2.+.2.+2.+.2.-

Totals AE

Activit" ( of Time

Cost +pent On

+.3 A A

2.+.3.!

2.+.3.$

2.+.3.'

2.+.3.+

2.+.3.-

Totals AE

Activit" ( of Time

Cost +pent On

+.4 A A

2.+.4.!

2.+.4.$

2.+.4.'

2.+.4.+

2.+.4.-

Totals AE

Activit" ( of TimeCost +pent On

+. A A

2.+..!

2.+..$

2.+..'

2.+..+

2.+..-

Totals AE



Activit" ( of Time

Cost +pent On

+.!A A A

2.+.!A.!

2.+.!A.$

2.+.!A.'2.+.!A.+

2.+.!A.-

Totals AE

%ere is a &uic' double chec' to ma'e sure you didn(t miss anything:

3otal Activit+ Cost per this &or,sheet 2-',3AA

3otal Activit+ Cost per 3a' : 2-',3AA

Difference A



for

h "ou

this worksheet.

Allocated Total $nit

Cost Output Driver $nits Cost Ref

$$,'23 ?umber of ?ew Taps !4 K !,$+$.-4 2.+.!.!

!$2,3++ ?umber of *emote :? etups !$ K !A,-2!.2 2.+.!.$

A DIBAJ 2.+.!.'A DIBAJ 2.+.!.+

A DIBAJ 2.+.!.-

!+,!!A


Cost Output Driver $nits Cost

2.+.$.!

2.+.$.$

2.+.$.'

2.+.$.+

2.+.$.-A



2,4!! ?umber of Maintenance *outines $3 K ',-4-.- 2.+.'.!

-$,!$ ?umber of >nscheduled ction /vents !! K +,3'.AA 2.+.'.$

A 2.+.'.'

A 2.+.'.+

A 2.+.'.-

!+4,+A



!',+44 ?umber of Interface Tables ! K !',+44.AA 2.+.+.!

$A,$'$ ?umber of /T: *outines Completed $ K !A,!!2.AA 2.+.+.$

A 2.+.+.'

A 2.+.+.+

A 2.+.+.-





'',3$A



-$,+$' ?umber of /nd >ser *e#uests - K !A,+4+.2A 2.+.-.!

$$,+23 ?umber of 8unctional *eworks ! K $$,+23.AA 2.+.-.$A 2.+.-.'

A 2.+.-.+

A 2.+.-.-

3+,4A



2.+.2.!

2.+.2.$

2.+.2.'

2.+.2.+ 2.+.2.-

A



2.+.3.!

2.+.3.$

2.+.3.'

2.+.3.+

2.+.3.-

A



2.+.4.!

2.+.4.$

2.+.4.'

2.+.4.+

2.+.4.-

A

Allocated Total $nit Cost Output Driver $nits Cost Ref

2.+..!

2.+..$

2.+..'

2.+..+

2.+..-

A





2.+.!A.!

2.+.!A.$

2.+.!A.' 2.+.!A.+

2.+.!A.-

A




0inal eport

PurposeThis worksheet captures and reports "our costs as determined b" various tabs in this workbook.

Indicate the *eporting &eriod 0

#8 Departmental Costs '+ esource (5aseline Cost to 'e Allocated)

Resource Pool Amount

'.! ?etwork /ngineers !AA,AAA

'.$ Database dministrators !$-,AAA

'.' 7perational Management 24,-AA

'.+ ervice upport B 6elp Desk $$-,AAA

'.- 6ardware and /#uipment 34,!AA

'.2 /9ternal B Indirect Costs -3,!AA'.3 A A

'.4 A A

'. A A

'.!A A A

3otal esource Costs ;<1*=>>

%8 Cost '+ Cost O'9ects (0inal Allocated Costs)

Ref Cost Ob*ect Amount $nits

2.+.!.! ?ew ?etwork Taps K $$,'23 !4

2.+.!.$ etup :ocal rea ?etworks *emote ites K !$2,3++ !$

+.$ Installation of ?etwork Connections and /#uipment K $A2,'!- !'-2.+.'.! *outine cheduled Maintenance K 2,4!! $3

2.+.'.$ >nscheduled 8i9es and 1ugs K -$,!$ !!

2.+.+.! Design Develop Interfaces K !',+44 !

2.+.+.$ Data /9tract B Transform B :oads (/T:) K $A,$'$ $

2.+.-.! 7ne Time d 6oc *e#uests K -$,+$' -

2.+.-.$ ?ew 8unctional &rocedure K $$,+23 !

+.2 trategic and *esource Management of Data K +A,3$- +



3otal Cost O'9ect Costs ;<1*=>>

Out of 5alance Amount A

18 3he information a'ove can 'e presented in graphic form per 'elow$

?etwork /ngineersG !AA,AAA

Database dministratorsG !$-,AAA

7perational ManagementG 24,-AAervice upport B 6elp DeskG $$-,AAA

6ardware and /#uipmentG 34,!AA

/9ternal B Indirect CostsG -3,!AA

esource Cost 5rea,down

0inal Cost 5rea,down

?ew ?etwork

etup :ocal*emote ite

Installation o

Connections

*outine ch

>nscheduled

Design De

Data /9tract



oa s

7ne Time d

?ew 8unctio

trategic andManagement



Taps

rea ?etworks

?etwork

and /#uipment

duled Maintenance

8i9es and 1ugs

elop Interfaces

B Transform B



6oc *e#uests

al &rocedure

*esourceof Data



8inal *eport

5lossar"




@lossar+ of 3erms

>suall" consists of several tasks.

to cost ob%ects based on allocation drivers.

is determined based on a cause effect relationshipG i.e. the more drivers consumed, the more costs.

an"thing that "ou want to measure cost against. 8or e9ample, in the world of financial

accounting, a general ledger account would be the cost ob%ect for capturing and reporting cost.

gets a benefit from the resource and should reflect some measure of its cost.

the model is usuall" the previous fiscal "ear for baseline data and an" periods thereafter are used for planning and budgeting in the current f iscal "ear.

so that the organi@ation can e9ecute on a service or activit".

benchmarking to reduce costs over time. >nit cost are also used for budgeting based on future e9pected

volumes.

Activit+ ctions taken to produce some form of output, such as setting up I& addresses or &rocessing Inv

Activit+ 5ased Costing methodolog" for allocating resources to activities and allocating activities

Activit+ Driver basis for allocating activit" costs to cost ob%ects such as customer service activities. >su

Actual Cost mount actuall" spent on resources per the 5eneral :edger

Allocation logical method of allocating costs based on cause effect relationships that reflects consumpti

Cost O'9ect ;hat "ou would like to assign cost to, such as the cost of services. cost ob%ect can be

Direct Cost Cost that are directl" traceable to the pro%ect and charged to the pro%ect without allocations in

Drivers The use of units, throughputs or some output that serves as the logical basis for allocating cost

Indirect Cost Cost not directl" associated with a pro%ect, but allocated to reflect the fact that the pro%ect

Period Time periods used in the model such as one "ear or two #uarters. The initial period used in

esource Departmental assets (labor, e#uipment, etc.) that perform the work (activities).

esource Driver basis for allocating resource costs to activities

esource Pool set of resources (labor, e#uipment, etc.) that collectivel" comes together

6nit Cost Total ctivit" Cost divided b" Driver olume. >nit Cost are often used for comparisons and





ices.

ll"

on.

olved

Simple ABC Model

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