The Cost Worksheet answers the question ‘how much does it cost to process an item?’. This worksheet also provides the activity fixed cost and resource cost sorted from largest to smallest contribution to the total Cost per Item.
The Process Cost per Item is provided at the top of the worksheet. The activities that make up the process are listed below this in order of contribution to the Process Cost per Item.
In the example shown, the Cost per Item is $78.06. The activity that contributes the most to this value is ‘Admit Patient (NSTEMI / POS TNI Enzymes)’, as is indicated by the ‘Percent’ value. If there is a process improvement focus on reducing the amount of cost incurred to complete the process, this worksheet can be used to identify where improvement actions should be focused to achieve the largest impact on process Cost per Item.
In addition to providing an activity-by-activity accounting of resources and fixed costs, this worksheet also provides a pie chart to show the relative contribution of each cost type to the total.
