CH02 Activity-to-Cost Mapping Worksheet
Basis: KM044 (Estimating Cost from Activities), KM045 (Basic Cost Structure) / primary_note: MN06 This worksheet converts the activity/cost items and cost-structure questions that actually appear in KM044 and KM045 directly into a fill-in-the-blank format. No new items or frameworks have been added.
Step 1. List Activities (KM044)
Write down the activities your business actually carries out under each category below. (Activity categories per KM044: Technology Development / Product Manufacturing / Sales & Distribution)
Technology Development
- Research personnel: ______________________
- Prototypes: ______________________
- Materials: ______________________
- Technology licensing: ______________________
- Outsourced development: ______________________
- Equipment: ______________________
- Information use: ______________________
Product Manufacturing
- Materials: ______________________
- Production personnel: ______________________
- Leasing: ______________________
- Outsourced processing: ______________________
- Transport/storage/packaging: ______________________
Sales & Distribution
- Market research: ______________________
- Securing distribution channels: ______________________
- Advertising: ______________________
- Exhibitions: ______________________
- Samples: ______________________
- Sales personnel: ______________________
Check: The more concrete the execution content of the business plan, the more concrete the cost estimate becomes. If the items above feel vague, the execution plan itself may need to be made more concrete.
Step 2. Classify the Cost Structure (KM045)
Transfer the cost items listed in Step 1 into the table below and classify them along each axis.
| Cost Item | Fixed Cost / Variable Cost | Direct Cost / Indirect Cost |
|---|---|---|
- Fixed Cost: a cost that occurs at a constant level regardless of production volume
- Variable Cost: a cost that changes with production/sales volume
- Direct Cost: a cost that can be directly traced to a specific product or service
- Indirect Cost: a cost spread across multiple departments/products that is difficult to clearly attribute
Step 3. Aggregate Cost (KM045)
- (Manufacturing company) Material cost + Labor cost + Manufacturing overhead = Manufacturing Cost: ______________________
- (Distribution company) Purchase cost of goods: ______________________
- SG&A: ______________________
- Total Cost (Manufacturing Cost or purchase cost + SG&A): ______________________
Step 4. Judgment Questions (KM044, KM045)
- Can a profit still be left after covering these activities and costs?
- Is the structure Fixed-Cost-heavy or Variable-Cost-heavy? What does that mean for the pressure to secure sales volume?
- Is the structure one in which per-unit profit remains sufficient as sales volume grows?
- If Manufacturing Cost (or purchase cost) is high, is there room to lower unit cost by cutting distribution stages or increasing production volume?