Activity Analysis
he activities identified by Clara and her staff for the first'snapshot' are given appendix 1 and the cost drivers are given in appendix 2. For the first 12 month the annual staff related cost for the department is f200.000 and the estimated umber of hours for all staff is 8,000. Clara decided to include only staff relate her calculations as this represented approximately 80% of total department costs
Value-added activities The chief executive has indicated that all managers will have to cont reduction exercise in the next 6 months. No details are yet available managers will be asked to identify value-added and non-value added exercise