costalloc

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C062 Online account 062 Online

Revenue102,807
Direct margin44,777
Activity cost62,553
ABC profit-17,776 (-17.3%)
Traditional profit26,889

hidden loser Traditional costing assigns 17,888 of overhead from 640 labour hours; ABC assigns 62,553.

Profit waterfall

-25,000025,00050,00075,000100,000125,000 Revenue: 102,807 102,807 RevenueDirect cost: -58,030 -58,030 Direct costDirect margin: 44,777 44,777 Direct marginDelivery: -14,255 -14,255 DeliverySetups: -8,645 -8,645 SetupsCustomer support: -7,566 -7,566 Customer supportOrder processing: -6,607 -6,607 Order processingEngineering changes: -5,007 -5,007 Engineering changesReturns handling: -4,824 -4,824 Returns handlingOther activities: -15,647 -15,647 Other activitiesProfit: -17,776 -17,776 Profit

Activity costs

ActivityCostShare
Delivery14,25523%
Setups8,64514%
Customer support7,56612%
Order processing6,60711%
Engineering changes5,0078%
Returns handling4,8248%
Quality inspection3,8206%
Machine run3,7186%
Custom finishing3,2135%
Hand assembly1,9553%
Credit and collections1,6953%
Pallet handling1,2462%