In a Cost Analysis report in time-based activity-based costing, the first step is to divide the total cost of the resources suppliedby the practical capacity of the resources supplied to obtain the cost per minute of the resource supplied.

Cost Analysis Report

A detailed examination of cost elements and their impact on the overall expenses of a business, often used to inform financial decisions and strategies.

Time-Based Activity-Based Costing

A costing method that assigns costs based on the amount of time activities take to complete, enhancing the accuracy of product costing.

Practical Capacity

The maximum amount of work that could realistically be achieved in a given period under normal working conditions.