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If a cost is traced to a segment using activity-based costing, it may or may not be an avoidable cost of the segment.

Define Activity -based costing.

Resources (cost of the resources used in the activity) and volume are two expenses that go into calculating the overall cost of an activity (additional costs incurred when the activity occurs). The resulting equation is as follows:

  • Cost of resources used to complete the activity plus the cost of the custom volume equals the overall activity cost.
  • TIBCO Nimbus® will use the costed rate of the resource, the percentage allocation of the resource, and the given length of the activity to determine the cost of the activity if a costed resource is associated to it.
  • Resource Cost is equal to the following: rate, duration, and percentage.

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