T-Town Hockey is back in action at the Huntington Center on Saturday, November 7, when the Toledo Walleye take on Adirondack. The puck drops at 7:15 p.m., but youâll want to arrive early for the Opening Night Craft Beer Bash, taking place from 5-7 p.m. in the Aquarium.
Activity Cost Driver is measure of frequency and intensity of demand placed on activities by cost object. It is used to assign activity costs to cost objects. To carry out a value chain analysis, ABC is a necessary tool. To carry out ABC, it is necessary that cost drivers are established for different cost pools.
Chapter 5 Cost Allocation and Activity-Based Costing Systems 203 Exhibit 5-9 is a graphical representation of the data collected for the fouractivity centres identified in Step 1. For each activity centre, data collectedincluded traceable costs and the physical flow of cost-driver units.o cost would be allocated back to the first twodepartments, even if they had used laundry services.As in the direct method, note that the total costs of the revenue-producingdepartments after allocation, $1,430,000 + $545,000 + $3,025,000 = $5,000,000,equal the total of the direct department costs before allocation.