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Book chapter
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Reference no. 2223BC
Chapter from: "Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits"
Published by: Harvard Business Publishing
Published in: 2008

Abstract

Calculating capacity cost rates is the second element in a time-driven activity-based costing model. This chapter discusses when to capture cost at a department or a process level, how to incorporate all relevant costs, and how to measure practical capacity. This chapter is excerpted from ‘Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits'.

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Abstract

Calculating capacity cost rates is the second element in a time-driven activity-based costing model. This chapter discusses when to capture cost at a department or a process level, how to incorporate all relevant costs, and how to measure practical capacity. This chapter is excerpted from ‘Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits'.

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