Activity Based Costing

Situation
This model represents a typical mortgage service center at a full service bank. The purpose of
the model is to track calls coming in to the center in order to measure performance parameters
such as customer waiting time, staff utilization, and operating costs. The model uses Activity
Based Costing (ABC) to allocate proper overhead costs to each product serviced. The two main
products serviced by the center are Fixed and Adjustable Rate Mortgages (FRM and ARM). A
small number of non-related calls are serviced as well.

The model will run for 105 hours, which represents one week from 8 am Moday to 5 pm Friday.
At the end of each run, ABC cost figures are calculated and displayed on the screen. To view
these statistics, simply press the Page Down key after the model begins to execute or select a
view from the Views panel.

Solutions Café
Our support team has been working on adding solution articles and videos for
our YouTube Channel and Solutions Café. Log in to the Solutions Café
(http://www.promodel.com/solutionscafe) for these solutions and more!

You can also access our YouTube channel here

https://www.youtube.com/user/ProModelSimulation