Unformatted text preview: • Facility level – “cause and effect relationship” is applied in this level. Using the same UOP example, the number of students per program would be used. At the facility level, the online costs of library, ALEKS, Tech Support, etc, would be used by all students, not taking into account the students’ subjects. In an effort to have a fair cost allocation at UOP, Staff salaries would be at the unit level, Facilitator salaries at the Batch level, Consultant’s fees would be at the Product level, and Services at the Facility level. This would produce a different cost-allocation, that would be beneficial in identifying losses, if say, there were an increase in number of students…but still reporting a loss....
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- Spring '10
- Causality, Technical support, Batch Level, product level