This PPT slide, part of the 26-slide Competitive Comparison Analysis PowerPoint presentation, outlines the allocation methods based on selected cost drivers across various activities. It categorizes costs into 4 main areas: Purchasing, Shipping, Distribution Handling, and Handling. Each category highlights specific costs and their corresponding cost drivers, providing a structured approach to understanding how expenses can be allocated effectively.

For Purchasing, costs include discounts, product costs, and administrative labor. The cost drivers identified are actual costs and weight, indicating that these factors significantly influence overall purchasing expenses. The comments suggest that commissions and most expenses can be directly assigned, emphasizing the importance of clear cost attribution.

Shipping costs are primarily freight-related, with drivers such as cubic feet, weight, and miles. This section illustrates that freight costs are influenced by multiple factors, including the distance traveled and the volume of goods shipped. The details point out that there are 3 key drivers for freight costs, which can help in optimizing shipping strategies.

Distribution Handling focuses on costs associated with distribution centers, where cubic feet and labor hours are the main cost drivers. The comments note practical considerations, like the stacking capabilities of cans versus bottles, which can affect storage efficiency and operational costs.

Overall, the slide serves as a concise reference for understanding how different cost drivers impact various activities. It provides insights into the allocation of costs, which is crucial for decision-making and resource management. This structured approach can help organizations refine their cost management strategies.

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Competitive Analysis Cost Management Resource Management