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Activity-Based Cost Allocation
Each service/product: real cost? — not "fake organizational average".
Goal
Surface loss-making services hidden by profitable ones in "average".
Steps
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1
Identify main activities (5-10) in your business.
Expected Outcome
Immediate
You find a "looks profitable" service that's losing.
Evidence base
School: Activity-Based Costing
Founders: Robert Kaplan · Robin Cooper (1988)
Kaplan & Cooper (Harvard) — HBR 1988 "Measure Costs Right"; book 1992; Activity-Based Costing as accounting revolution.
Keywords
#abc#activity-based-costing#kaplan#cooper#budget#finance#cost-allocation#margin#profitability#accounting#robin-cooper#تكلفة حقيقية للمنتج#عامل مسبب التكلفة#منتج خاسر مخفي#measure-costs-right#هامش حقيقي لكل منتج#خمسة إلى عشرة أنشطة#hbr-1988-ثورة-محاسبية#1992-كتاب-abc-kaplan-cooper#مقارنة السعر بالتكلفة الفعلية#معدل لكل وحدة تكلفة كلية#أي منتج تشك في ربحيته الحقيقية#إخفاء الخاسرين بمتوسط#كشف الخدمات الخاسرة الحقيقية#تكلفة كل منتج بدقة
Frequently asked questions
How long does "Activity-Based Cost Allocation" take?
This exercise takes about 90 minutes, practiced solo in a Action format.
When will I notice the effect of "Activity-Based Cost Allocation"?
You find a "looks profitable" service that's losing. In the short term: In a quarter, drop losers, focus on winners.
Is "Activity-Based Cost Allocation" evidence-based?
Yes — it draws on Activity-Based Costing (Robert Kaplan, Robin Cooper (1988)). Kaplan & Cooper (Harvard) — HBR 1988 "Measure Costs Right"; book 1992; Activity-Based Costing as accounting revolution.
Is "Activity-Based Cost Allocation" suitable for beginners?
Its difficulty level is: Advanced. No external tools required — it can be practiced directly inside the app.
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