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Activity-Based Cost Allocation

“Activity-Based Cost Allocation” is a short 90-minute practice from Zayenha Practice in the Administrative domain. Each service/product: real cost? — not "fake organizational average". Its goal: Surface loss-making services hidden by profitable ones in "average". You can read its goal and first step for free; the full practice with every step and the interactive part comes with Plus.

Each service/product: real cost? — not "fake organizational average".

90 min Advanced

Goal

Surface loss-making services hidden by profitable ones in "average".

Steps

1

Identify main activities (5-10) in your business.

5 more steps locked

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.

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 platform.

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