1. Allocate Single Cost Pool to Users
Intermediate Cost Analysis
and Management
Show Slide #1: Allocate Single Cost Pool to Users
Title: Allocate Single Cost Pool to Users
References: Handouts, Excel Spreadsheets
Facilitator Material and Student Material: Dry erase markers, white boards, access to Excel spreadsheets, case-studies
Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, practical exercises, access to Excel spreadsheets, case-studies All required references and technical manuals will be provided by the local Command.
Student Material: Students should possess course handouts, practical exercises, access to Excel spreadsheets, case-studies and standard classroom supplies.
The 21st Century Soldier Competencies are essential to ensure Soldiers and leaders are fully prepared to prevail in complex, uncertain environments. This lesson reinforces the following 21st Century Soldier Competencies:
Communication and Engagement (Oral, written, and negotiation)
Critical thinking, intergovernmental, and multinational competence
Tactical and Technical Competence
Throughout the lesson discussion seek opportunities to link the competencies with the lesson content through the student’s experiences.
3.3

2. Have you ever been here?
Show Slide #2: Concrete Experience: Have you ever been here?
Facilitator’s Note: (Concrete Experience 10 minutes) Present students the slide statements Ask students what their thoughts are on “other considerations besides $”
Facilitator’s Note: (Publish and Process 10 minutes) The critical portion of this part of the ELM process is to force the students to reflect. Ask a series of thought influencing questions.
Facilitator’s Note: Have you ever been here? Deciding how to split the dinner check is a simple example of cost assignment or allocation. However, as the characters in the comic strip suggest, there are other things to consider besides the math. We will talk about how cost assignments can affect behaviors.

3. Terminal Learning Objective
Action: Allocate Single Cost Pool to Users
Condition: You are training to become an ACE with access to ICAM course handouts, readings, spreadsheet tools, and awareness of Operational Environment (OE) variables and actors
Standard: With at least 80% accuracy:
Explain how poor cost information encourages undesired behaviors
Calculate driver rate
Calculate proportion
Show Slide #3: TLO
Action: Allocate Single Cost Pool to Users
Conditions: You are training to become an ACE with access to ICAM course handouts, readings, spreadsheet tools, and awareness of Operational Environment (OE) variables and actors
Standard: With at least 80% accuracy: Explain how poor cost information encourages undesired behaviors, calculate driver rate, calculate proportion rates
Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
INSTRUCTIONAL LEAD-IN. Starts on next slide

4. A Broad Definition of Managerial Costing
raw accounting data
managerial
costing
translation
Show Slide #4: Instructional Lead-in (Introduction)
Facilitator Note: This diagram illustrates that managerial costing translates raw accounting data (building blocks) into managerially useful information (symbolized by the textured box). The managerial costing translation is “big gray area” where the cost analyst must use professional judgment to make a good translation.
managerially useful information

5. Why Is This Translation Needed?
Accounting Systems usually measure input or source costs
Labor, overhead, materials
Salaries, benefits, supplies, contracts
Managers want measurements based on output or consumption
Product, service, project
Consuming organization, customer
Show Slide #5: Introduction (Cont.)
Facilitator Note: Accounting systems generally don’t meet management information needs because they are intended for external reporting purposes. The input or source costs they measure become the building blocks of the managerial costing system.
Management is usually interested in measurements of output or consumption.
Managerial costing makes the translation from source to consumption, or from input to output.

6. Managerial Costing Terms
cost pool
raw accounting data
managerial
costing
translation
method of
distribution =
Show Slide #6: Introduction (Cont.)
Facilitator Note: The illustration shows how common managerial costing terms fit into the model:
raw accounting data = cost pool
managerial costing translation = method of distribution
managerially useful information = cost object
cost object
managerially useful information

7. Terminology Cost pool: Examples:
An aggregation of incurred or source costs to be distributed
Examples:
Salary and benefits, supplies, travel, etc. in an airfield operations center
Utility bills for a garrison
cost pool
Show Slide #7: Introduction (Cont.)
Facilitator Note: A cost pool is an aggregation of incurred costs (as measured by the accounting system) which must be distributed or assigned to cost objects.
Examples:
Salary and benefits, supplies, travel, etc. in an airfield operations center
Utility bills for a garrison
[Ask the students to suggest others]

8. Terminology (Cont.) Method of distribution: Example:
The mechanics of deriving management information from the cost pool
Example:
Determine unit cost by adding all input costs and dividing by number of units
method of
distribution
Show Slide #8: Introduction (Cont.)
Facilitator Note: Method of distribution is the mechanics of deriving management information from the cost pool. The source costs in the cost pool will be assigned or distributed to cost objects, those views of cost that are useful to management.
Example: Determine unit cost by adding all input costs and dividing by number of units

9. Terminology (Cont.) Cost Object: A view of cost needed by management
Examples:
120mm tube product cost
Morale, welfare, recreation cost
Armor school cost
Show Slide #9: Introduction (Cont.)
Facilitator Note: Cost Object is a view of cost needed by management, or information in a format that will be useful to management
Management may want to know:
-Product cost (120mm tube)
-Service cost (Morale, Welfare and recreation) or
-Organization, Customer or Consumer cost (Armor School)
cost object

10. What is Allocation? Allocation: Example:
A method of distribution that distributes cost pool to cost objects in the same proportion as cost driver
Example:
Distributing the cost of utilities to occupants in the same proportion as space occupied
allocation
based on
cost driver
Show Slide #10: Introduction (Cont.)
Facilitator Note: The primary method of distribution we will cover is Allocation.
Allocation is a method of distribution that distributes the cost pool to the cost objects in the same proportion as a cost driver.
Example: Distributing the cost of utilities to occupants in the same proportion as space occupied
The cost pool is utilities, the cost object is the occupants of the building. The cost driver is space occupied. Allocation would distribute 30% of the utility costs to an occupant who occupies 30% of the space in the building.

11. The Mechanics of Allocation
Allocation is a basic technique of activity based costing (ABC)
Becoming an expert is required but easy
Allocation mechanics excel spreadsheet makes it even easier
allocation
based on
cost driver
Show Slide #11: Calculate driver rate and proportion
1. Learning Step/Activity #1 Calculate driver rate and proportion
Method of Instruction: DSL (large or small group discussion)
Facilitator to Student Ratio:
Time of Instruction: 2.0 (Total)
Media: Power Point Presentation, Printed Reference Materials
Facilitator’s Note: The following section focuses on the mechanics of allocation. Allocation is a basic technique of activity based costing (ABC) Becoming an expert is required but easy It is important to understand Allocation --it is the foundation of managerial costing. Fortunately it is easy to understand.
This course provides a tool “Allocation Mechanics Spreadsheet” which illustrates the process very clearly.
Let’s look at the basic algebraic equation.

12. Two Allocation Methods
Rate Method:
Uses a computed rate per driver unit
Proportion Method:
Computes a proportional share of the total cost based on driver usage
Both Methods
Yield same results
Represent the same underlying algebra
Show Slide #12: Calculate driver rate and proportion (Cont.)
Facilitator Note: There are two methods of allocation: the rate method and the proportion method. The Rate Method Uses a computed rate per driver unit. We will learn how to calculate the rate. The Proportion Method Computes a proportional share of the total cost based on driver usage. We’ll learn how to calculate the proportion and how to use it to assign cost to cost objects. Note that both methods yield the same results, and represent two views of looking at the same equation

13. Reconciling the Two Methods
Rate
Method
Total Cost Pool
Total Number of Driver Units
* Number of Driver Units Used
Equals
Proportion
Method
Number of Driver Units Used
Total Number of Driver Units
* Total Cost Pool
Show Slide #13: Calculate driver rate and proportion (Cont.)
Facilitator Note: Rate Method: Under the rate method, the first step is to compute a rate per driver unit:
total cost pool ÷ total number of driver units
The rate is represented by the orange-highlighted text.
(If your driver is square feet, you will obtain a rate or dollar value per square foot)
The second step is to compute the allocation for the cost object: multiply the rate x number of driver units used by the cost object
Once we have calculated a rate per square foot, we multiply that times the number of square feet occupied by each of the building’s occupants, and that gives us total cost for each occupant.
Reconciling the two:
The equation at the bottom of the slide shows an all purpose formula for computing allocation. The two methods just break the equation down in different ways. In the all-purpose equation, the elements of the rate equation are highlighted in orange to correspond to the rate calculation at the top of the page. The number of driver units used by each cost object is highlighted in green in both versions of the calculation.
Equals
Number of Driver Units Used * Total Cost Pool
Total Number of Driver Units

14. Reconciling the Two Methods
Rate
Method
Total Cost Pool
Total Number of Driver Units
* Number of Driver Units Used
Equals
Proportion
Method
Number of Driver Units Used
Total Number of Driver Units
* Total Cost Pool
Show Slide #14: Calculate driver rate and proportion (Cont.)
Facilitator Note: Proportion Method: In the proportion method, the first step is to Compute the proportion of driver usage:
number of driver units used by cost object ÷ Total number of driver units
This portion of the calculation is highlighted in red. This represents the percentage of the total cost driver units used by a particular cost object.
(You will get a fraction, a decimal or a percentage)
Once you have the proportion for each cost object you can proceed to step 2, Compute the allocation for the cost object:
Multiply the Proportion x Total Cost Pool to yield the total cost allocated or assigned to the cost object
Reconciling the two:
The calculation at the bottom of the slide shows an all purpose formula for computing allocation. The red-highlighted text represents the proportion calculation. The two methods just break the equation down in different ways. Students should recognize that they will arrive at the same answer regardless of which method they use (although there may be some rounding error) and they should use the method that makes the most sense to them or best suits the situation at hand.
Equals
Number of Driver Units Used * Total Cost Pool
Total Number of Driver Units

15. Split the Dinner Check Total $160.00 Carol Alice Thank You Bob Ted
Chez Paris
Fillet and Lobster
Chicken Kiev
Top Sirloin
Caesar Salad
Coffee
House Wine
Champagne
Ice Cream
Chocolate Cheesecake
Sampler
Soup/Salad
Aperitif
Total $160.00
Carol
Alice
Show Slide #15: Calculate driver rate and proportion (Cont.)
Facilitator Note: Example: Splitting the dinner check
There are four people eating dinner together: Bob, Carol, Ted and Alice
The check is $160. How should it be split?
Notice a variety of entrees: one person had fillet and lobster, while another had only a Caesar salad.
Thank You
Bob
Ted

16. Identifying Key Information
What is the cost pool?
The dinner check of $160
What are the cost objects?
Bob, Carol, Ted and Alice
What is the cost driver?
Number of persons (or eaters)
Show Slide #16: Calculate driver rate and proportion (Cont.)
Facilitator Note: It’s essential to identify the key pieces of information in any allocation problem. They are: Cost pool, cost object, and cost driver.

17. Identifying Key Information
What is the cost pool?
What are the cost objects?
Bob, Carol, Ted and Alice
What is the cost driver?
Number of persons (or eaters)
The dinner check of $160
Bob, Carol, Ted and Alice
Show Slide #17: Calculate driver rate and proportion (Cont.)
Facilitator Note: What is the cost pool? The dinner check of $160
What are the cost objects? Bob, Carol, Ted and Alice
] What is the cost driver? Number of persons (or eaters)
Number of persons (or eaters)

18. Identifying Key Information (Cont.)
What is the cost pool?
The dinner check of $160
What are the cost objects?
What is the cost driver?
Number of persons (or eaters)
Show Slide #18: Calculate driver rate and proportion (Cont.)
Facilitator Note:

19. Identifying Key Information (Cont.)
What is the cost pool?
The dinner check of $160
What are the cost objects?
Bob, Carol, Ted and Alice
What is the cost driver?
Show Slide #19: Calculate driver rate and proportion (Cont.)
Facilitator Note: What is the cost driver?
Number of persons (or eaters)

20. Allocation Mechanics .xls
Show Slide #20: Calculate driver rate and proportion (Cont.)
Facilitator Note: This slide illustrates the use of the Allocation Mechanics Spreadsheet. The first page of the Excel workbook has white spaces for data entry. Enter the data as illustrated here.
Cost Pool = dinner check
Total Cost =$ 160
Cost Objects = Bob, Carol, Ted and Alice
Cost Driver = eaters

21. Allocation by Rate Method
First, calculate the driver rate:
Total cost pool
Total driver units
Cost pool = $160
Total driver units = 4 eaters
Rate = $40/eater
Cost pool = $160
Total driver units = 4 eaters
Show Slide #21: Calculate driver rate and proportion (Cont.)
Facilitator Note: First, calculate the driver rate. The formula for driver rate is:
Total cost pool
Total driver units
Rate = $40/eater

22. Allocation by Rate Method (Cont.)
Second, multiply by driver units used by each cost object:
Bob = 1 eater * $40/eater = $40
Carol = 1 eater * $40/eater = $40
Ted = 1 eater * $40/eater = $40
Alice = 1 eater * $40/eater = $40
What if Bob and Carol are a couple and Bob is paying for them both?
Show Slide #22: Calculate driver rate and proportion (Cont.)
Facilitator Note: Second, multiply by driver units used by each cost object:
How many driver units used by each? If each is paying for him/herself, then each represents one driver unit (eater)

23. Allocation by Rate Method (Cont.)
Second, multiply by driver units used by each cost object:
Bob = 1 eater * $40/eater = $40
Carol = 1 eater * $40/eater = $40
Ted = 1 eater * $40/eater = $40
Alice = 1 eater * $40/eater = $40
What if Bob and Carol are a couple and Bob is paying for them both?
Show Slide #23: Calculate driver rate and proportion (Cont.)
Facilitator Note:
Bob = 1 eater * $40/eater = $40
Carol = 1 eater * $40/eater = $40
Ted = 1 eater * $40/eater = $40
Alice = 1 eater * $40/eater = $40
Notice that the total is $160. That is, the entire dinner check has been allocated.

24. Allocation by Rate Method (Cont.)
Second, multiply by driver units used by each cost object:
Bob = 1 eater * $40/eater = $40
Carol = 1 eater * $40/eater = $40
Ted = 1 eater * $40/eater = $40
Alice = 1 eater * $40/eater = $40
What if Bob and Carol are a couple and Bob is paying for them both?
Show Slide #24: Calculate driver rate and proportion (Cont.)
Facilitator Note: What if Bob and Carol are a couple and Bob is paying for them both?
Bob = 2 eater * $40/eater = $80
Carol = 0 eater * $40/eater = $0
Ted = 1 eater * $40/eater = $40
Alice = 1 eater * $40/eater = $40
The distribution would change but the total allocated is still equal to $160.

25. Allocation by Rate Method (Cont.)
Show Slide #25: Calculate driver rate and proportion (Cont.)
Facilitator Note: This slide shows how the spreadsheet calculates the allocation:
Total cost ÷ total number of eaters gives a rate of $40 per eater.
Each person, or cost object, represents one eater. 1 x $40 = $40
Note that this allocation is the same as the allocation made by the proportion method. Note that the whole $160 has been allocated.

26. Allocation by Proportion Method
First, calculate each cost object’s proportion:
Driver units used
Total driver units
Bob = 1 eater/4 eaters = 25%
Carol = 1 eater/4 eaters = 25%
Ted = 1 eater/4 eaters = 25%
Alice = 1 eater/4 eaters = 25%
Show Slide #26: Calculate driver rate and proportion (Cont.)
Facilitator Note: First, calculate each cost object’s proportion:
Driver units used
Total driver units

27. Allocation by Proportion Method (Cont.)
First, calculate each cost object’s proportion:
Driver units used
Total driver units
Bob = 1 eater/4 eaters = 25%
Carol = 1 eater/4 eaters = 25%
Ted = 1 eater/4 eaters = 25%
Alice = 1 eater/4 eaters = 25%
Show Slide #27: Calculate driver rate and proportion (Cont.)
Facilitator Note: Each cost object’s proportion is:
Bob = 1 eater/4 eaters = 25%
Carol = 1 eater/4 eaters = 25%
Ted = 1 eater/4 eaters = 25%
Alice = 1 eater/4 eaters = 25%
Notice that the total of all proportions is equal to 100%

28. Allocation by Proportion Method (Cont.)
Second, multiply each cost object’s proportion by total cost pool
Bob = 25% * $160 = $40
Carol = 25% * $160 = $40
Ted = 25% * $160 = $40
Alice = 25% * $160 = $40
What if Bob and Carol are a couple and Bob is paying for them both?
Show Slide #28: Calculate driver rate and proportion (Cont.)
Facilitator Note: Second, multiply each cost object’s proportion by total cost pool

29. Allocation by Proportion Method (Cont.)
Second, multiply each cost object’s proportion by total cost pool
Bob = 25% * $160 = $40
Carol = 25% * $160 = $40
Ted = 25% * $160 = $40
Alice = 25% * $160 = $40
What if Bob and Carol are a couple and Bob is paying for them both?
Show Slide #29: Calculate driver rate and proportion (Cont.)
Facilitator Note:
Bob = 25% * $160 = $40
Carol = 25% * $160 = $40
Ted = 25% * $160 = $40
Alice = 25% * $160 = $40
Notice again that the sum of all cost objects’ allocations is equal to $160.

30. Allocation by Proportion Method (Cont.)
Second, multiply each cost object’s proportion by total cost pool
Bob = 25% * $160 = $40
Carol = 25% * $160 = $40
Ted = 25% * $160 = $40
Alice = 25% * $160 = $40
What if Bob and Carol are a couple and Bob is paying for them both?
Show Slide #30: Calculate driver rate and proportion (Cont.)
Facilitator Note: What if Bob and Carol are a couple and Bob is paying for them both?
Bob’s proportion is
2/4 = 50%
50% * $160 = $80
Bob = 50% * $160 = $80
Carol = 0% * $160 = $0
Ted = 25% * $160 = $40
Alice = 25% * $160 = $40
Notice again that all percentages add up to 100% and the total allocated is $160.

31. Allocation by Proportion
Show Slide #31: Calculate driver rate and proportion (Cont.)
Facilitator Note: This slide shows the output from the proportion method, as computed by the Allocation Mechanics Spreadsheet.
The first step shows that each diner represents 1/4 or 25% of the driver usage.
This proportion is multiplied times the total cost of $160, giving each eater an allocation of $40
Note that the whole $160 is allocated.

32. The Results
Show Slide #32: Calculate driver rate and proportion (Cont.)
Facilitator Note: Here are the results of the allocation based on eaters.

33. LSA #1 Check on Learning
Q1. What is the rate per hour when the cost pool totals $30,000 and the total hours are 500? A1. $30,000/500 hours = $60/hour Q2. One of the cost objects uses 50 hours or resources from the cost pool described above. What is its proportion? A2. 50 hours/500 hours = 10%
Show Slide #33: LSA #1 Check on Learning
Facilitator Note: Ask the following questions. Facilitate the answers given.
Q. What is the rate per hour when the cost pool totals $30,000 and the total hours are 500?
A. $30,000/500 hours = $60/hour
Q. One of the cost objects uses 50 hours or resources from the cost pool described above. What is its proportion?
A. 50 hours/500 hours = 10%

34. LSA #1 Summary
During this lesson, we discussed various managerial costing definitions and terminology, as well as rate and proportion allocation methods.
Show Slide #34: LSA #1 Summary
Facilitator Note: Restate the Summary: During this lesson, we discussed various managerial costing definitions and terminology, as well as rate and proportion allocation methods.

35. Cross Subsidization Consumption Cost allocation
Is This Fair?
Show Slide #35: Explain how poor cost information encourages undesired behaviors
2. Learning Step/Activity #2 Explain how poor cost information encourages undesired behaviors
Method of Instruction: DSL (large or small group discussion)
Facilitator to Student Ratio:
Time of Instruction: 2.0 (Total)
Media: Power Point Presentation, Printed Reference Materials
Facilitator’s Note: This slide compares the dinner check allocation with actual consumption. The columns on the left show actual consumption, while the columns on the right show the allocation. This is known as the “Peanut Butter Effect”. The “lumps” in the actual consumption have been “smoothed over” by averaging.
Almost everyone has been in a situation like this. There are varying levels of consumption (As we noted earlier, one person ordered a Caesar Salad, while another ordered Fillet and Lobster.) Then, when the check comes, Usually it is the person who ordered the Fillet and Lobster that wants to split the check in this manner.
Consumption Cost allocation
Consumption Cost allocation

36. Incremental Effects What Happens if Bob Spends $10 More?90 80 70 60
Original 50 40
Incremental
Show Slide #36: Explain how poor cost information encourages undesired behaviors (Cont.)
Facilitator Note: Say Bob was the high level consumer. Bob will only pay $40 for his consumption of $60.
If Bob consumes $10 more (the total bill goes to $170), how much more will he pay?
He will only pay $42.50 or an incremental change of $ This is equal to 25¢ on the dollar.
Economic theory tells us that as the cost of goods drops, the demand increases, and the demand for free goods is infinite.
This may not be free goods, but it is pretty close. When the cost of goods is underreported, goods are over-consumed.
Change 30 20 10
Bob Consumes
Bob Pays

37. Incremental Effects What Happens if Bob Spends $10 Less?80 70 60
Incremental
Savings 50 40
Decreased
Amount 30
Show Slide #37: Explain how poor cost information encourages undesired behaviors (Cont.)
Facilitator Note: Similarly, if Bob decreases his consumption by $10 (total bill goes to $150) he will only save $2.50.
This illustrates one of the key problems when free goods are created: There is every incentive to consume more and little or no incentive to consume less. 20 10
Bob Consumes
Bob Pays

38. Allocation: a Zero-Sum Game
The Total is Constant
Changing Allocation Basis Simply Redistributes Cost
Increased Allocation for One Cost Object
Decreases the Allocation for Other Cost Objects
Sometimes Called “Balloon Squeezing” or “Peanut Butter Effect”
Show Slide #38: Explain how poor cost information encourages undesired behaviors (Cont.)
Facilitator Note: A zero sum game means that the total cost pool remains the same. Using a different cost driver or allocation basis simply redistributes the same costs in different proportion.
If the allocation increases for one cost object, it will decrease for another, and vice versa. This is also known as “squeezing the balloon” (picture a balloon…you can push the air around to different parts of the balloon, but the total amount of air remains the same).

39. Measurement Effects Motivation
Managerial Costing Inevitably Impacts Behavior
Design of Managerial Costing Systems Must Recognize and Anticipate This Effect
Consider in this Example
What Incentives Exist to Spend More?
What Incentives Exist to Spend Less?
What Would You Do if You Went to Dinner with Them Tonight?
Show Slide #39: Explain how poor cost information encourages undesired behaviors (Cont.)
Facilitator Note: It is an inescapable fact that measurement impacts behavior. People are generally motivated to act in their own self interest, and the cost system must recognize and anticipate this.

40. Conclusion
Allocation Based on Number of Eaters Failed to Reflect Resource Consumption
Results:
Unfair Cross-Subsidizations
The Creation of Almost Free Incremental Goods
Dysfunctional Behavioral Motivation
Detailed Record Keeping May be Best in This Problem --i.e. Separate Checks
Show Slide #40: Conclusion
Facilitator Note: This problem, while illustrating the mechanics of allocation, does not reflect true consumption because the cost driver “number of eaters” does not reflect consumption.

41. Conduct Practical Exercises
Show Slide #41: Conduct Practical Exercise
Facilitator Note: Have students complete PE AJBIC106.1 and conduct Check on Learning. When satisfied, have students move on AJBIC106.2.
Address any questions or areas of concern until students can successfully complete the exercise.

42. TLO Summary Action: Allocate Single Cost Pool to Users
Condition: You are training to become an ACE with access to ICAM course handouts, readings, spreadsheet tools, and awareness of Operational Environment (OE) variables and actors
Standard: With at least 80% accuracy:
Explain how poor cost information encourages undesired behaviors
Calculate driver rate
Calculate proportion
Show Slide #42: TLO Summary
Action: Allocate Single Cost Pool to Users
Conditions: You are training to become an ACE with access to ICAM course handouts, readings, spreadsheet tools, and awareness of Operational Environment (OE) variables and actors
Standard: With at least 80% accuracy: Explain how poor cost information encourages undesired behaviors, calculate driver rate, calculate proportion rates
“Or”
Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.