costalloc

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C061 Online account 061 Online

Revenue118,601
Direct margin50,400
Activity cost109,566
ABC profit-59,166 (-49.9%)
Traditional profit28,574

hidden loser Traditional costing assigns 21,827 of overhead from 780 labour hours; ABC assigns 109,566.

Profit waterfall

-100,000-50,000050,000100,000150,000 Revenue: 118,601 118,601 RevenueDirect cost: -68,200 -68,200 Direct costDirect margin: 50,400 50,400 Direct marginEngineering changes: -31,989 -31,989 Engineering changesSetups: -17,529 -17,529 SetupsDelivery: -15,053 -15,053 DeliveryQuality inspection: -9,549 -9,549 Quality inspectionCustomer support: -8,316 -8,316 Customer supportOrder processing: -6,977 -6,977 Order processingOther activities: -20,153 -20,153 Other activitiesProfit: -59,166 -59,166 Profit

Activity costs

ActivityCostShare
Engineering changes31,98929%
Setups17,52916%
Delivery15,05314%
Quality inspection9,5499%
Customer support8,3168%
Order processing6,9776%
Custom finishing6,3416%
Returns handling4,2214%
Machine run4,0254%
Hand assembly2,3862%
Credit and collections1,7902%
Pallet handling1,3901%