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To become ABMs (activity-based managers), we need to distinguish "predictive" hourly costs used for estimating, as well as "analytic" costs used for tactical and strategic decision support. We need to multiply our hourly rates by actual performance far more than we do in most shops. Then we'd begin to look at jobs, job types, customer accounts, suppliers, cost centers, trends, yields—genuine internal analysis—wouldn't we? We'd quickly discover that some refined tuning of hourly cost rates is needed.
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