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Manage   »   Cost   »   Activity Based Costing

Finally the assessment of costs at the phase level support activity based costing due to the fact that all phases have directly attributable products and outputs. The work inside a phase is directly attributable to that phase and the direct costs attributable to the phase are directly related to the development and delivery of these specific products.

This information is collected by, and is useful to, client organisations when they wish to assess the performance of a particular horizontal section of the project delivery process (such as the Develop phase or the Run phase) when costs are assessed in preparation for outsourcing decisions. The uncomplicated structure of the Toolkit Lifecycle makes it a simple and straightforward task to assess the costs and interfaces of specific phases by determining the costs of horizontal slices through the Lifecycle.

It is also a straightforward task to separate out selected phases and to merge the remaining phase with phases selected for outsourced delivery. This provides a merged outsourcing Lifecycle that will fit seamlessly with an outsourced delivery partner who used the same Toolkit Lifecycle. This model will also provide identical project cost structures and project cost reporting.

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Activity Based Costing


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