$1.$ Identify the services or programs to be included in the

cost and profitability analysis.

$2.$ Examine the costs listed in Table $2.$

a$.$ Identify the direct costs associated with each service or

program.

b$.$ Which costs would be organization$-$sustaining costs?

Provide an argument for or against assigning these

costs to services or programs.

$3.$ Identify the broad activity categories and create cost

pools by assigning the costs from Table $2$ to the pools.

$4.$ Identify the cost drivers that have a causal relationship to

the activity cost pools created in Question $3.$

$5.$ Calculate the activity or cost$-$driver rates for each cost

pool. Note: You should develop rates that will allocate

costs to ACDC programs and$/$or tenants only. You should

not allocate any costs back to general administration.

$6.$ Using the services or programs identified in Question

$1,$ determine service or program revenues, assign the

costs to the service or programs, and calculate service or

program profitability. A spreadsheet may be helpful with

this task.

$7.$ Based upon your calculations in Question $6,$ which

services or programs are operating successfully? What

appears to be the determining factor in whether the

service or program is profitable?