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Introduction
This workbook was developed to assist the Data Management Center (DMC) in gaining better insights behind the cost of oper 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. Data Entry Cell > Tab 1 2 3 4 5 6 7 8 Description Main Menu Overview Resource Pools (Step 1) Activity Costing (Step 2) Activity Drivers (Step 3) Cost Objects (Step 4) Final Report (Step 5) Glossary Purpose
Starting point for using this cost model Some background information on how this model works Identify resource pools and their related costs as a starting point for th Identify and describe the key activities performed by the Data Manage Based on analysis, determine the output metrics for allocating the cos Identify and describe the cost objects that DMC wants to use Report of costs by cost objects Glossary of terms used related to this cost model
Point of Contact
Matt H. Evans www.exinfm.com
l, equipment, etc.)
ts as a starting point for the model rmed by the Data Management Center etrics for allocating the costs MC wants to use
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.
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.
1 Actual Costs for Resources Based on invoices, General Ledger Reports and other sources, the actual costs as of a cut-off period will most likel change. For example, newly awarded contracts, expansion of staffing resources, and installation of new equipment will change the current costs captured for resources on tab 3 of this model. 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. 3 Allocation of Resources (Resource Drivers) If resources change or activities change, then you will need to update the resource drivers involved in
allocating the costs between the resources and the activities. Additionally, it is a good idea to validate the current allocations used since people may shift in how much time they spend on an activity. 4 New Activities Require New Drivers and Cost Objects In the event a department begins offering a new service to a customer, this will require re-building the model to include new resource costs, drivers, activities, and cost objects.
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.
neral Ledger. Once you rces) to the activities that re typically allocated by
s involved in
a to validate the
-building the
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
Resource Pool 3.1 Network Engineers 3.2 Database Administrators 3.3 Operational Management 3.4 Service Support / Help Desk 3.5 Hardware and Equipment 3.6 External / Indirect Costs 3.7 3.8 3.9 3.10 Total Cost Accounted For in this Model Total Cost Incurred for Baseline Period Cost Not Accounted For in this Model
Actual Costs 100,000 Detail Cost Schedule and General Ledger Reports 125,000 Detail Cost Schedule and General Ledger Reports 68,500 Detail Cost Schedule and General Ledger Reports 225,000 Vendor Invoices and General Ledger Reports 78,100 Inventory Control Records and General Ledger Re 57,100 Analysis with Subject Matter Experts
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
one full month and break out this costs into by listing all of the personnel assigned to the
t Schedule and General Ledger Reports t Schedule and General Ledger Reports t Schedule and General Ledger Reports voices and General Ledger Reports Control Records and General Ledger Reports ith Subject Matter Experts
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.
Briefly describe the key activities performed by the Department. Try to keep this list to the main activities that are somehow link At the same time, the list should be complete enough to account for most of the resource costs spent each month by the Depa 4.1 Installation of Network Connections and Equipment 4.2 Trouble Shoot Network Connection Problems 4.3 Database Optimization and Maintenance 4.5 Data Migration and Integration 4.6 End User Reports and Programs 4.7 Strategic and Resource Management of Data 4.8 4.9 4.10
Step 2 - For each activity, allocate the resource pool costs across to each activity
3.1 Network Engineers 3.1.1 100,000 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - > 3.1.2 0 Allocation Allocation 3.1.3 0 Percent Amount Activity Name Allocate 3.1.1 > 25% 25,000 Installation of Network Connections and Equipment Allocate 3.1.2 > 0% 0 Installation of Network Connections and Equipment Allocate 3.1.3 > 0% 0 Installation of Network Connections and Equipment Sub Totals 25,000 The following should balance out to fully allocate your resource costs across all activities: Total Amount Allocated 3.1.1 100,000 Total Percent Allocated 3.1.1 Total Amount Allocated 3.1.2 0 Total Percent Allocated 3.1.2 Total Amount Allocated 3.1.3 0 Total Percent Allocated 3.1.3 3.2 Database Administrators 3.2.1 100,000 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - > 3.2.2 0 Allocation Allocation
Percent Amount Activity Name 0% 0 Installation of Network Connections and Equipment 0% 0 Installation of Network Connections and Equipment 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 3.2.1 100,000 Total Percent Allocated 3.2.1 Total Amount Allocated 3.2.2 0 Total Percent Allocated 3.2.2 Total Amount Allocated 3.2.3 25,000 Total Percent Allocated 3.2.3 3.3 Operational Management 3.3.1 68,500 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - > 3.3.2 0 Allocation Allocation 3.3.3 0 Percent Amount Activity Name Allocate 3.3.1 > 10% 6,850 Installation of Network Connections and Equipment Allocate 3.3.2 > 0% 0 Installation of Network Connections and Equipment Allocate 3.3.3 > 0% 0 Installation of Network Connections and Equipment Sub Totals 6,850 The following should balance out to fully allocate your resource costs across all activities: Total Amount Allocated 3.3.1 68,500 Total Percent Allocated 3.3.1 Total Amount Allocated 3.3.2 0 Total Percent Allocated 3.3.2 Total Amount Allocated 3.3.3 0 Total Percent Allocated 3.3.3 3.4 Service Support / Help Desk 3.4.1 190,000 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - > 3.4.2 0 Allocation Allocation 3.4.3 35,000 Percent Amount Activity Name Allocate 3.4.1 > 20% 38,000 Installation of Network Connections and Equipment Allocate 3.4.2 > 0% 0 Installation of Network Connections and Equipment Allocate 3.4.3 > 5% 1,750 Installation of Network Connections and Equipment Sub Totals 39,750 The following should balance out to fully allocate your resource costs across all activities: Total Amount Allocated 3.4.1 190,000 Total Percent Allocated 3.4.1 Total Amount Allocated 3.4.2 0 Total Percent Allocated 3.4.2 Total Amount Allocated 3.4.3 35,000 Total Percent Allocated 3.4.3 3.5 Hardware and Equipment 3.5.1 0 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - > 3.5.2 70,100 Allocation Allocation 3.5.3 8,000 Percent Amount Activity Name Allocate 3.5.1 > 0% 0 Installation of Network Connections and Equipment Allocate 3.5.2 > 70% 49,070 Installation of Network Connections and Equipment Allocate 3.5.3 > 70% 5,600 Installation of Network Connections and Equipment Sub Totals 54,670 The following should balance out to fully allocate your resource costs across all activities: Total Amount Allocated 3.5.1 0 Total Percent Allocated 3.5.1 Total Amount Allocated 3.5.2 70,100 Total Percent Allocated 3.5.2 Total Amount Allocated 3.5.3 8,000 Total Percent Allocated 3.5.3 3.6 External / Indirect Costs
3.2.3 25,000 Allocate 3.2.1 > Allocate 3.2.2 > Allocate 3.2.3 >
3.6.1 0 < - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.1 - - - - - - - - - - - - - - - > 3.6.2 50,100 Allocation Allocation 3.6.3 7,000 Percent Amount Activity Name Allocate 3.6.1 > 0% 0 Installation of Network Connections and Equipment Allocate 3.6.2 > 40% 20,040 Installation of Network Connections and Equipment Allocate 3.6.3 > 40% 2,800 Installation of Network Connections and Equipment Sub Totals 22,840 The following should balance out to fully allocate your resource costs across all activities: Total Amount Allocated 3.6.1 0 Total Percent Allocated 3.6.1 Total Amount Allocated 3.6.2 50,100 Total Percent Allocated 3.6.2 Total Amount Allocated 3.6.3 7,000 Total Percent Allocated 3.6.3 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 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 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
3.8
3.9
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
0 0 0 0
epartment. Subject Matter Experts within the ; such as Setting Up IP Addresses, Processing
how personnel spend their time. Surveys and pend on various activities.
main activities that are somehow linked to customers. costs spent each month by the Department.
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 35% 35,000 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems Sub Totals 35,000 100% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.1.1 Total Percent Allocated 3.1.2 Total Percent Allocated 3.1.3
Amount
Activity Name 0 Trouble Shoot Network Connection Problems 0 Trouble Shoot Network Connection Problems 0 Trouble Shoot Network Connection Problems 0
Total Percent Allocated 3.2.1 Total Percent Allocated 3.2.2 Total Percent Allocated 3.2.3
100% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 100% < Should add up to 100% if you are allocating any costs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 20% 13,700 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems Sub Totals 13,700 100% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.3.1 Total Percent Allocated 3.3.2 Total Percent Allocated 3.3.3
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 65% 123,500 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems 70% 24,500 Trouble Shoot Network Connection Problems Sub Totals 148,000 100% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.4.1 Total Percent Allocated 3.4.2 Total Percent Allocated 3.4.3
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Trouble Shoot Network Connection Problems 5% 3,505 Trouble Shoot Network Connection Problems 5% 400 Trouble Shoot Network Connection Problems Sub Totals 3,905 0% < Should add up to 100% if you are allocating any costs 100% < Should add up to 100% if you are allocating any costs 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.5.1 Total Percent Allocated 3.5.2 Total Percent Allocated 3.5.3
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Trouble Shoot Network Connection Problems 10% 5,010 Trouble Shoot Network Connection Problems 10% 700 Trouble Shoot Network Connection Problems Sub Totals 5,710 0% < Should add up to 100% if you are allocating any costs 100% < Should add up to 100% if you are allocating any costs 100% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.6.1 Total Percent Allocated 3.6.2 Total Percent Allocated 3.6.3
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems Sub Totals 0 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.7.1 Total Percent Allocated 3.7.2 Total Percent Allocated 3.7.3
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems Sub Totals 0 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.8.1 Total Percent Allocated 3.8.2 Total Percent Allocated 3.8.3
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems Sub Totals 0 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs
Total Percent Allocated 3.9.1 Total Percent Allocated 3.9.2 Total Percent Allocated 3.9.3
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.2 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems 0% 0 Trouble Shoot Network Connection Problems Sub Totals 0 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs 0% < Should add up to 100% if you are allocating any costs Place into Single Cell 149,110 206,315 148,940 33,720 74,890 40,725 0 0 0 0 653,700
Total Percent Allocated 3.10.1 Total Percent Allocated 3.10.2 Total Percent Allocated 3.10.3
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 5% 5,000 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance Sub Totals 5,000
Amount Activity Name 85,000 Database Optimization and Maintenance 0 Database Optimization and Maintenance 21,250 Database Optimization and Maintenance 106,250
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 10% 6,850 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance Sub Totals 6,850
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 2% 3,800 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance Sub Totals 3,800
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Database Optimization and Maintenance 20% 14,020 Database Optimization and Maintenance 20% 1,600 Database Optimization and Maintenance Sub Totals 15,620
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Database Optimization and Maintenance 20% 10,020 Database Optimization and Maintenance 20% 1,400 Database Optimization and Maintenance Sub Totals 11,420
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.3 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance 0% 0 Database Optimization and Maintenance Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 10,000 Data Migration and Integration 0 Data Migration and Integration 0 Data Migration and Integration 10,000
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 20% 20,000 End User Reports and Pr 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr Sub Totals 20,000
Amount Activity Name 10,000 Data Migration and Integration 0 Data Migration and Integration 1,250 Data Migration and Integration 11,250
Amount 5,000 End User Reports and Pr 0 End User Reports and Pr 1,250 End User Reports and Pr 6,250
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 0 Data Migration and Integration 0 Data Migration and Integration 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 15% 10,275 End User Reports and Pr 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr Sub Totals 10,275
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 0 Data Migration and Integration 0 Data Migration and Integration 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 12% 22,800 End User Reports and Pr 0% 0 End User Reports and Pr 20% 7,000 End User Reports and Pr Sub Totals 29,800
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 3,505 Data Migration and Integration 400 Data Migration and Integration 3,905
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 7,515 Data Migration and Integration 1,050 Data Migration and Integration 8,565
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 0% 0 End User Reports and Pr 15% 7,515 End User Reports and Pr 15% 1,050 End User Reports and Pr Sub Totals 8,565
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 0 Data Migration and Integration 0 Data Migration and Integration 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 0 Data Migration and Integration 0 Data Migration and Integration 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 0 Data Migration and Integration 0 Data Migration and Integration 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.4 - - - - - - - - - - - - - - - > Allocation Amount Activity Name 0 Data Migration and Integration 0 Data Migration and Integration 0 Data Migration and Integration 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4 Allocation Allocation Percent Amount 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr 0% 0 End User Reports and Pr Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 5% 5,000 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data Sub Totals 5,000
Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
Amount
Activity Name 0 Strategic and Resource Management of Data 0 Strategic and Resource Management of Data 1,250 Strategic and Resource Management of Data 1,250
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 45% 30,825 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data Sub Totals 30,825
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 1% 1,900 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 5% 1,750 Strategic and Resource Management of Data Sub Totals 3,650
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data Sub Totals 0
cation of Costs to Activity 4.5 - - - - - - - - - - - - - - - > Activity Name End User Reports and Programs End User Reports and Programs End User Reports and Programs
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.6 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 Strategic and Resource Management of Data 0% 0 Strategic and Resource Management of Data 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 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
Amount 0 0 0 0
Activity Name 0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
ty 4.6 - - - - - - - - - - - - - - - >
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.7 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
0 0 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
Amount 0 0 0 0
Activity Name 0 0 0
Amount 0 0 0 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.8 - - - - - - - - - - - - - - - > Allocation Allocation Percent Amount Activity Name 0% 0 0% 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
Activity Name 0 0 0
Amount 0 0 0 0
Activity Name
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
< - - - - - - - - - - - - - - - Allocation of Costs to Activity 4.10 - - - - - - - Allocation Allocation Percent Amount Activity Name 0 0% 0 0 0% 0 0 0% 0 Sub Totals 0
Activity Name 0 0 0
Step 1 - Identify the output metric that can used to drive and allocate activity costs
Activities per Tab 4 4.1 Installation of Network Connections and Equipment 4.2 Trouble Shoot Network Connection Problems 4.3 Database Optimization and Maintenance 4.4 Data Migration and Integration 4.5 End User Reports and Programs 4.6 Strategic and Resource Management of Data 4.7 4.8 4.9 4.10 Output Metric (Activity Driver) Number of Installations Number of Help Desk Tickets Number of Database Work Orders Number of Data Transfer Projects Number of User Development Requests Number of Unique Data Repositories 0 0 0 0
Step 2 - Where applicable and measurable, convert your costs into hourly rates based on time involved.
Activity 5.1 Installation of Network Connections and Equipment 5.2 Trouble Shoot Network Connection Problems 5.3 UNABLE TO MEASURE 5.4 UNABLE TO MEASURE 5.5 End User Reports and Programs 5.6 UNABLE TO MEASURE 5.7 5.8 5.9 5.10 Total Volume Hours per Unit 5 35 135 2 Total Hours 175 270
30
60
ocate the Activity Costs per Tab 4 to ers will also help calculate unit cost e same as your activities, then you
c (Activity Driver) ns k Tickets Work Orders sfer Projects elopment Requests ata Repositories
Unit Cost 29,822 1,528 24,823 16,860 37,445 10,181 #VALUE! #VALUE! #VALUE! #VALUE! Total
37,445
$624.08
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
Ref Activity / Cost Object 4.1 Installation of Network Connections and Equipment 6.4.1.1 New Network Taps 6.4.1.2 Setup Local Area Networks - Remote Sites 6.4.1.3 6.4.1.4 6.4.1.5 Activity Cost 149,110 % of Time Spent On 15% 85%
4.2 Trouble Shoot Network Connection Problems 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
4.3 Database Optimization and Maintenance 6.4.3.1 Routine Scheduled Maintenance 6.4.3.2 Unscheduled Fixes and Bugs 6.4.3.3 6.4.3.4 6.4.3.5
4.4 Data Migration and Integration 6.4.4.1 Design & Develop Interfaces 6.4.4.2 Data Extract / Transform / Loads (ETL) 6.4.4.3 6.4.4.4 6.4.4.5
4.5 End User Reports and Programs 6.4.5.1 One Time Ad Hoc Requests 6.4.5.2 New Functional Procedure 6.4.5.3 6.4.5.4 6.4.5.5
4.6 Strategic and Resource Management of Data 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 Activity Cost 4.7 6.4.7.1 6.4.7.2 6.4.7.3 6.4.7.4 6.4.7.5 Totals Activity Cost 4.8 6.4.8.1 6.4.8.2 6.4.8.3 6.4.8.4 6.4.8.5 Totals Activity Cost 4.9 6.4.9.1 6.4.9.2 6.4.9.3 6.4.9.4 6.4.9.5 0 0 0 0 0 0
0% % of Time Spent On
0% % of Time Spent On
0% % of Time Spent On
Totals Activity Cost 4.10 6.4.10.1 6.4.10.2 6.4.10.3 6.4.10.4 6.4.10.5 Totals 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 0 0
0% % of Time Spent On
0%
wants to use for ything for which you e to complete this worksheet.
Allocated Cost
Output Driver
Total Units 18 12
Unit Cost
Ref
22,367 Number of New Taps 126,744 Number of Remote LAN Setups 0 0 0 149,110 Allocated Cost Total Units
$1,242.58 6.4.1.1 $10,561.96 6.4.1.2 #DIV/0! 6.4.1.3 #DIV/0! 6.4.1.4 #DIV/0! 6.4.1.5
Output Driver
Output Driver
Ref
96,811 Number of Maintenance Routines 52,129 Number of Unscheduled Action Events 0 0 0 148,940 Allocated Cost Total Units
Output Driver
Unit Cost 1 2
Ref
Output Driver
Ref
52,423 Number of End User Requests 22,467 Number of Functional Reworks 0 0 0 74,890 Allocated Cost Total Units
Output Driver
Unit Cost
Output Driver
Output Driver
Output Driver
Output Driver
$653,700 0
New Network Taps Setup Local Area Networks - Remote Sites Installation of Network Connections and Equipment Routine Scheduled Maintenance Unscheduled Fixes and Bugs
Design & Develop Interfaces Data Extract / Transform / Loads (ETL) One Time Ad Hoc Requests New Functional Procedure Strategic and Resource Management of Data
Bugs
Management of Data
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
ineers 100,000
al Management 68,500
Taps
rea mote
Network nd
Design & Develop Interfaces Data Extract / Transform / Loads (ETL) One Time Ad Hoc Requests New Functional Procedure Strategic and Resource Management of Data
uled
Fixes and
Management of Data
ocessing Invoices.
ctivities. Usually
cts consumption.
allocations involved