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C065 Online account 065 Online

Revenue99,504
Direct margin42,978
Activity cost52,131
ABC profit-9,153 (-9.2%)
Traditional profit20,129

hidden loser Traditional costing assigns 22,849 of overhead from 817 labour hours; ABC assigns 52,131.

Profit waterfall

-25,000025,00050,00075,000100,000 Revenue: 99,504 99,504 RevenueDirect cost: -56,525 -56,525 Direct costDirect margin: 42,978 42,978 Direct marginDelivery: -18,132 -18,132 DeliveryOrder processing: -8,404 -8,404 Order processingCustomer support: -7,042 -7,042 Customer supportMachine run: -3,770 -3,770 Machine runReturns handling: -3,015 -3,015 Returns handlingHand assembly: -2,498 -2,498 Hand assemblyOther activities: -9,269 -9,269 Other activitiesProfit: -9,153 -9,153 Profit

Activity costs

ActivityCostShare
Delivery18,13235%
Order processing8,40416%
Customer support7,04214%
Machine run3,7707%
Returns handling3,0156%
Hand assembly2,4985%
Setups2,4605%
Credit and collections2,1564%
Quality inspection2,1004%
Pallet handling1,7253%
Custom finishing4801%
Engineering changes3481%