Beruflich Dokumente
Kultur Dokumente
Introduction
This workbook was developed to assist the Data Management Center (DMC) in gaining better insights behind the cost of opera
In order to better understand costs, the following steps were taken to develop this spreadsheet model:
1. Identify all of the resources available to DMC and the associated costs of the resources (personnel, equipment, etc.)
2. Identify all of the major activities of DMC such as setting up IP addresses, installing network equipment, etc.
3. Map a relationship between the resources and activities - referred to as "Resource Drivers" (allocates costs to key activities)
4. Map a relationship between the activities and cost objects - referred to as "Activity Drivers" (allocates activity cost to your se
5. Determine the costs of each service, product or what-ever you consider your cost object within the model.
Since cost data, activities, and other attributes change, this model should be reviewed and updated at least once a year.
Point of Contact
Matt H. Evans
www.exinfm.com
Main Menu Resource Pools Activity Drivers Final Report
Overview Activity Costing Cost Objects Glossary
l, equipment, etc.)
Purpose
The purpose of this model is to allocate costs. This model is based on the principle that activities incur costs through the
consumption of resources. As end users demand products or services, activities must be performed.
Step 1: You have to pull actual costs (what was spent) per the most reliable source, such as the General Ledger. Once you
have identified the actual costs, then you have to determine how to allocate all of these costs (resources) to the activities that
are performed by the department (or what-ever domain you are building the model to). Labor costs are typically allocated by
looking at the percentage of time people spend on various activities.
Step 2: Once you understand the costs by activities, then you need to allocate these costs to your cost objects (such as the
different service lines you perform for customers). For example, the number of help desk tickets processed is an output
driver to allocate costs from the help desk activity to help desk support costs.
• What is the true costs of the services we are providing to our customers?
• How much should we charge customers for the cost of our services?
• What are low and high priority activities in terms of funding
How do I use the information in this Model?
You want to key-in on what your Activity Costs are and also look at those activities that may not be linked to
customers. For example, if you have significant costs for non-value added activities (not close to the customer), then
you might want to pursue more lean approaches to incurring these costs. For example, if you are forced to reduce
your costs, then you would not want to cut activities very close to the customer. Also, you can express your
costs in terms of Unit Costs. This is a common benchmark for reducing your costs over time.
2 Activities Performed
Based on changes in what a department does, the activities on tab 4 may change. For example, if a
department discontinues a key service or starts providing a new service, then this model will require
updating.
1 Link to General Ledger - Where practical, try to obtain and balance your cost data directly with the General
Ledger since this is the official system of record for costs.
2 Prioritize the Activities - If the number of activities is greater than ten, you may want to focus on the vital few activiti
in order to keep the model simple and manageable.
3 Group Non Traceable Activities - Some activities are difficult to trace back to specific resource pools. May want to
group all of these activities together and allocate using a single driver such as direct labor cost.
Main Menu Resource Pools Activity Drivers Final Report
Overview Activity Costing Cost Objects Glossary
customer), then
ced to reduce
s involved in
a to validate the
-building the
Purpose
The purpose of this worksheet is to identify and capture all of the resources and their associated costs. This represents an imp
starting point in allocating costs to activities. This is the baseline for developing the rest of the model.
Instructions
A recommended practice is to determine the total costs of running the department for one full month and break out this costs in
resource pools that are linked to specific services or activities. You may have to start by listing all of the personnel assigned to
department and then group them together based on what they do.
Step 1 - Capture the total overall costs for each resource pool
Actual
Resource Pool Costs
3.1 Network Engineers 100,000 Detail Cost Schedule and General Ledger Reports
3.2 Database Administrators 125,000 Detail Cost Schedule and General Ledger Reports
3.3 Operational Management 68,500 Detail Cost Schedule and General Ledger Reports
3.4 Service Support / Help Desk 225,000 Vendor Invoices and General Ledger Reports
3.5 Hardware and Equipment 78,100 Inventory Control Records and General Ledger Re
3.6 External / Indirect Costs 57,100 Analysis with Subject Matter Experts
3.7
3.8
3.9
3.10
Total Cost Accounted For in this Model 653,700 85%
Total Cost Incurred for Baseline Period 770,000 100%
Cost Not Accounted For in this Model -116,300 15%
Step 2 - If possible, try to breakdown the Actual Costs per above into components such as labor,
equipment, and indirect cost since each of these components might have to get allocated differently
NOTE: The template below is setup for three components - feel free to modify as needed for a good cost allocation.
Actual Direct Labor Costs
Resource Pool Costs 3.n.1
3.1 Network Engineers 100,000 100,000
3.2 Database Administrators 125,000 100,000
3.3 Operational Management 68,500 68,500
3.4 Service Support / Help Desk 225,000 190,000
3.5 Hardware and Equipment 78,100 0
3.6 External / Indirect Costs 57,100 0
3.7 0 0 0
3.8 0 0 0
3.9 0 0 0
3.10 0 0 0
Main Menu Resource Pools Activity Drivers
Overview Activity Costing Cost Objects
Time
Frame
t Schedule and General Ledger Reports Jul-07
t Schedule and General Ledger Reports Jul-07
t Schedule and General Ledger Reports Jul-07
voices and General Ledger Reports Jul-07
Control Records and General Ledger Reports Jul-07
ith Subject Matter Experts Jul-07
Purpose
The purpose of this worksheet is to allocate your resource pool costs (tab 3) to a list of critical activities performed by the Depa
Instructions
There are two important steps to completing this worksheet:
1 Identify and describe the various activities performed by the resources in the Department. Subject Matter Experts w
Department should have a good overall understanding of department activities; such as Setting Up IP Addresses, P
Budget Requests, and Installing New Network Connections.
2 In order to allocate resource pool costs to activities, you will need to determine how personnel spend their time. Su
personal interviews are often used to ascertain the proportion of time people spend on various activities.
Step 2 - For each activity, allocate the resource pool costs across to each activity
3.7 0
3.7.1 0 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - >
3.7.2 0 Allocation Allocation
3.7.3 0 Percent Amount Activity Name
Allocate 3.7.1 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.7.2 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.7.3 > 0% 0 Installation of Network Connections and Equipment
Sub Totals 0
The following should balance out to fully allocate your resource costs across all activities:
Total Amount Allocated 3.7.1 0 Total Percent Allocated 3.7.1
Total Amount Allocated 3.7.2 0 Total Percent Allocated 3.7.2
Total Amount Allocated 3.7.3 0 Total Percent Allocated 3.7.3
3.8 0
3.8.1 0 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - >
3.8.2 0 Allocation Allocation
3.8.3 0 Percent Amount Activity Name
Allocate 3.8.1 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.8.2 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.8.3 > 0% 0 Installation of Network Connections and Equipment
Sub Totals 0
The following should balance out to fully allocate your resource costs across all activities:
Total Amount Allocated 3.8.1 0 Total Percent Allocated 3.8.1
Total Amount Allocated 3.8.2 0 Total Percent Allocated 3.8.2
Total Amount Allocated 3.8.3 0 Total Percent Allocated 3.8.3
3.9 0
3.9.1 0 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - >
3.9.2 0 Allocation Allocation
3.9.3 0 Percent Amount Activity Name
Allocate 3.9.1 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.9.2 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.9.3 > 0% 0 Installation of Network Connections and Equipment
Sub Totals 0
The following should balance out to fully allocate your resource costs across all activities:
Total Amount Allocated 3.9.1 0 Total Percent Allocated 3.9.1
Total Amount Allocated 3.9.2 0 Total Percent Allocated 3.9.2
Total Amount Allocated 3.9.3 0 Total Percent Allocated 3.9.3
3.10 0
3.10.1 0 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - >
3.10.2 0 Allocation Allocation
3.10.3 0 Percent Amount Activity Name
Allocate 3.10.1 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.10.2 > 0% 0 Installation of Network Connections and Equipment
Allocate 3.10.3 > 0% 0 Installation of Network Connections and Equipment
Sub Totals 0
The following should balance out to fully allocate your resource costs across all activities:
Total Amount Allocated 3.10.1 0 Total Percent Allocated 3.10.1
Total Amount Allocated 3.10.2 0 Total Percent Allocated 3.10.2
Total Amount Allocated 3.10.3 0 Total Percent Allocated 3.10.3
Total Percent Allocated 3.1.1 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.1.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.1.3 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.2.1 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.2.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.2.3 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.3.1 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.3.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.3.3 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.4.1 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.4.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.4.3 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.5.1 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.5.2 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.5.3 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.6.1 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.6.2 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.6.3 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.7.1 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.7.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.7.3 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.8.1 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.8.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.8.3 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.9.1 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.9.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.9.3 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.10.1 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.10.2 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.10.3 0% < Should add up to 100% if you are allocating any costs
Place into
Single Cell
4.1 149,110
4.2 206,315
4.3 148,940
4.4 33,720
4.5 74,890
4.6 40,725
4.7 0
4.8 0
4.9 0
4.10 0
653,700
Activity Drivers Final Report
Cost Objects Glossary
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
10,000 Data Migration and Integration 5% 5,000 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
1,250 Data Migration and Integration 5% 1,250 End User Reports and Pr
11,250 Sub Totals 6,250
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 15% 10,275 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Sub Totals 10,275
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 12% 22,800 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 20% 7,000 End User Reports and Pr
0 Sub Totals 29,800
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 0% 0 End User Reports and Pr
3,505 Data Migration and Integration 0% 0 End User Reports and Pr
400 Data Migration and Integration 0% 0 End User Reports and Pr
3,905 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 0% 0 End User Reports and Pr
7,515 Data Migration and Integration 15% 7,515 End User Reports and Pr
1,050 Data Migration and Integration 15% 1,050 End User Reports and Pr
8,565 Sub Totals 8,565
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4
Allocation Allocation Allocation
Amount Activity Name Percent Amount
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Data Migration and Integration 0% 0 End User Reports and Pr
0 Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 5% 5,000 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 5,000
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 5% 1,250 Strategic and Resource Management of Data
Sub Totals 1,250
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 45% 30,825 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 30,825
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 1% 1,900 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 5% 1,750 Strategic and Resource Management of Data
Sub Totals 3,650
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - >
Allocation Allocation
Activity Name Percent Amount Activity Name
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
End User Reports and Programs 0% 0 Strategic and Resource Management of Data
Sub Totals 0
ty 4.6 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - >
Allocation Allocation
Percent Amount Activity Name
ce Management of Data 0% 0 0
ce Management of Data 0% 0 0
ce Management of Data 0% 0 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
- - - - - - Allocation of Costs to Activity 4.9 - - - - - - - - - - - - - - - > < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - -
Allocation Allocation
Activity Name Percent Amount Activity Name
0 0% 0
0 0% 0
0 0% 0
Sub Totals 0
Costs to Activity 4.10 - - - - - - - - - - - - - - - >
Activity Name
0
0
0
Activity Name
0
0
0
Activity Name
0
0
0
Activity Name
0
0
0
Activity Name
0
0
0
Activity Name
0
0
0
Activity Name
0
0
0
Activity Name
0
0
0
Purpose
The purpose of this worksheet is to identify and capture a driver that can be used to allocate the Activity Costs per Tab 4 to
cost objects that the department wants to use for control over costs. These activity drivers will also help calculate unit cost
which will be used to help benchmark costs over future periods. If the Cost Object is the same as your activities, then you
do not need to complete Tab 6 - Cost Objects.
Step 1 - Identify the output metric that can used to drive and allocate activity costs
Step 2 - Where applicable and measurable, convert your costs into hourly rates based on time involved.
37,445 $624.08
Activity Drivers Final Report
Cost Objects Glossary
Cost Model for Data Management Center (DMC)
Cost Objects
Purpose
The purpose of this worksheet is to describe each of the cost objects that the department wants to use for
managing costs. Cost objects may differ from your activities since they can represent anything for which you
want to measure costs. If your activities represent your cost objects, then you do not have to complete this worksheet.
Step 1 - Identify Cost Objects for Each Activity and if different, then allocate the
activity costs and identify the driver used for measuring the Cost Object
Activity % of Time
Ref Activity / Cost Object Cost Spent On
4.1 Installation of Network Connections and Equipment 149,110
6.4.1.1 New Network Taps 15%
6.4.1.2 Setup Local Area Networks - Remote Sites 85%
6.4.1.3
6.4.1.4
6.4.1.5
Totals 100%
Activity % of Time
Cost Spent On
4.2 Trouble Shoot Network Connection Problems 206,315
6.4.2.1 ACTIVITIES USED FOR COST OBJECTS
6.4.2.2 REFER BACK TO STEP 3 / TAB 4
6.4.2.3
6.4.2.4
6.4.2.5
Totals 0%
Activity % of Time
Cost Spent On
4.3 Database Optimization and Maintenance 148,940
6.4.3.1 Routine Scheduled Maintenance 65%
6.4.3.2 Unscheduled Fixes and Bugs 35%
6.4.3.3
6.4.3.4
6.4.3.5
Totals 100%
Activity % of Time
Cost Spent On
4.4 Data Migration and Integration 33,720
6.4.4.1 Design & Develop Interfaces 40%
6.4.4.2 Data Extract / Transform / Loads (ETL) 60%
6.4.4.3
6.4.4.4
6.4.4.5
Totals 100%
Activity % of Time
Cost Spent On
4.5 End User Reports and Programs 74,890
6.4.5.1 One Time Ad Hoc Requests 70%
6.4.5.2 New Functional Procedure 30%
6.4.5.3
6.4.5.4
6.4.5.5
Totals 100%
Activity % of Time
Cost Spent On
4.6 Strategic and Resource Management of Data 40,725
6.4.6.1 ACTIVITIES USED FOR COST OBJECTS
6.4.6.2 REFER BACK TO STEP 3 / TAB 4
6.4.6.3
6.4.6.4
6.4.6.5
Totals 0%
Activity % of Time
Cost Spent On
4.7 0 0
6.4.7.1
6.4.7.2
6.4.7.3
6.4.7.4
6.4.7.5
Totals 0%
Activity % of Time
Cost Spent On
4.8 0 0
6.4.8.1
6.4.8.2
6.4.8.3
6.4.8.4
6.4.8.5
Totals 0%
Activity % of Time
Cost Spent On
4.9 0 0
6.4.9.1
6.4.9.2
6.4.9.3
6.4.9.4
6.4.9.5
Totals 0%
Activity % of Time
Cost Spent On
4.10 0 0
6.4.10.1
6.4.10.2
6.4.10.3
6.4.10.4
6.4.10.5
Totals 0%
Here is a quick double check to make sure you didn't miss anything:
Total Activity Cost per this Worksheet 653,700
Total Activity Cost per Tab 4 653,700
Difference 0
Main Menu Resource Pools Activity Drivers Final Report
Overview Activity Costing Cost Objects Glossary
6.4.2.1
6.4.2.2
6.4.2.3
6.4.2.4
6.4.2.5
0
6.4.6.1
6.4.6.2
6.4.6.3
6.4.6.4
6.4.6.5
0
6.4.7.1
6.4.7.2
6.4.7.3
6.4.7.4
6.4.7.5
0
6.4.8.1
6.4.8.2
6.4.8.3
6.4.8.4
6.4.8.5
0
6.4.9.1
6.4.9.2
6.4.9.3
6.4.9.4
6.4.9.5
0
Allocated Total Unit
Cost Output Driver Units Cost Ref
6.4.10.1
6.4.10.2
6.4.10.3
6.4.10.4
6.4.10.5
0
Cost Model for Data Management Center (DMC)
Final Report
Purpose
This worksheet captures and reports your costs as determined by various tabs in this workbook.
78,100
125,000
225,000
68,500
Jul-07
Unit Cost
$1,242.58
$10,561.96
$1,528.26
$3,585.59
$4,739.00
$13,488.00
$10,116.00
$10,484.60
$22,467.00
$10,181.25
125,000
Routine Scheduled
nections Maintenance
nt
/ One Time Ad Hoc
Loads Requests
nt
/ One Time Ad Hoc
Loads Requests
Final Report
Glossary
Cost Model for Data Management Center (DMC)
Glossary of Terms
Activity - Actions taken to produce some form of output, such as setting up IP addresses or Processing Invoices.
Usually consists of several tasks.
Activity Based Costing - A methodology for allocating resources to activities and allocating activities
to cost objects based on allocation drivers.
Activity Driver - A basis for allocating activity costs to cost objects such as customer service activities. Usually
is determined based on a cause effect relationship; i.e. the more drivers consumed, the more costs.
Actual Cost - Amount actually spent on resources per the General Ledger
Allocation - A logical method of allocating costs based on cause effect relationships that reflects consumption.
Cost Object - What you would like to assign cost to, such as the cost of services. A cost object can be
anything that you want to measure cost against. For example, in the world of financial
accounting, a general ledger account would be the cost object for capturing and reporting cost.
Direct Cost - Cost that are directly traceable to the project and charged to the project without allocations involved
Drivers - The use of units, throughputs or some output that serves as the logical basis for allocating cost
Indirect Cost - Cost not directly associated with a project, but allocated to reflect the fact that the project
gets a benefit from the resource and should reflect some measure of its cost.
Period - Time periods used in the model such as one year or two quarters. The initial period used in
the model is usually the previous fiscal year for baseline data and any periods thereafter are used for
planning and budgeting in the current fiscal year.
Resource - Departmental assets (labor, equipment, etc.) that perform the work (activities).
Resource Pool - A set of resources (labor, equipment, etc.) that collectively comes together
so that the organization can execute on a service or activity.
Unit Cost - Total Activity Cost divided by Driver Volume. Unit Cost are often used for comparisons and
benchmarking to reduce costs over time. Unit cost are also used for budgeting based on future expected
volumes.
Main Menu Resource Pools Activity Drivers Final Report
Overview Activity Costing Cost Objects Glossary
ocessing Invoices.
ctivities. Usually
ts consumption.
allocations involved