This week’s episode shows the general steps of an allocation processes, from transactions to balances and back down to transactions.
This graphic gives a sense of how the data flows for an allocation process.
- The costs must be accumulated to a total costs.
- The activities or drivers must also be accumulated to get to a total number of activities.
- The total costs are divided by the total activities to get to a per unit cost,
- Which is then multiplied by each of the driver specifics to determine what the cost of that driver is.
Prior Episode in Allocation Series: Allocation and Activities
Next Episode in Allocation Series: Data Implications of Allocation Processes
Watch all episodes in order on the Conversations with Kip Playlist.