From the course: Activity-Based Costing
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Building calculations
- What I love most about building the ABC model calculations is that we start to see everything come together. Now you might be wondering what I mean by this. Well, at this point, you've identified the three key steps of activity-based costing, but until now, they've kind of been kept separate. So how about we bring them all together. It's in this next step that we get our real aha moment. By this I mean, we see the numbers start to flow through the model. I encourage you to open the Excel file for this video and make sure you're in the Lists worksheet. As you can see, we have the three steps of our ABC model listed here, each one in a separate column. We can always add to this later on if we need to, which is why I've left a few cells blank at the bottom of each list. Now, go to the structure worksheet. What you will notice here is we have the cost pools in column B and dollars, let's say four-year actuals in column C. You'll have gotten this information from the accounting…
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