This implies, under ABC, that each
order consumes $8 of resource expense, each
inquiry $40, and each credit check $44.80, as
shown in the exhibit “Doing ABC the Traditional Way.” Armed with these figures, known
as the cost-driver rates, managers can assign
the costs of the department’s resources to the
customers and products that use its services.
This approach works well in the limited setting in which it was initially applied