T-Town Hockey is back in action at the Huntington Center on Saturday, November 7, when the Toledo Walleye take on Adirondack. The puck drops at 7:15 p.m., but youâll want to arrive early for the Opening Night Craft Beer Bash, taking place from 5-7 p.m. in the Aquarium.
Activity Cost Driver is measure of frequency and intensity of demand placed on activities by cost object. It is used to assign activity costs to cost objects. To carry out a value chain analysis, ABC is a necessary tool. To carry out ABC, it is necessary that cost drivers are established for different cost pools.
This new estimated activity time is known as the crash time, and the cost to achieve the crash time is referred to as the crash cost. Activity 1-2 can be crashed a total of 5 weeks (normal time - crash time = 12-7 = 5 weeks) at a total crash cost of $2,000 (crash cost - normal cost = $5,000-3,000 = $2,000). Dividing the total crash cost by the total allowable crash time yields the crash cost per week: If we assume that the relationship between crash cost and crash time is linear, then activity 1-2 can be crashed by any amount of time (not exceeding the maximum allowable crash time) at a rate of $400 per week.