Divide the total cost of the pool by the total number of driver units (e.g., shipping cost ÷500divided by 500 deliveries = per delivery).
Traditional costing answers, "What did we spend?" Activity-Based Costing answers, "Why did we spend it, and who should pay for it?" activity based cost definition
Activity-Based Costing is a method of assigning overhead and indirect costs—like electricity, supervision, and machine setup—to products and services based on the actual activities required to produce them. Divide the total cost of the pool by