Absolute Cost Weight

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Absolute Cost Weight

We use an absolute cost weight (ACW) to work with the efficiency of activity. It is the weight that the cost of a cost hub has to the overall cost of Org. A cost hub can be any part of Org, such as the sum of strategic initiative, the sum of operations, or the sum of any other part of Org. E.g., if the cost of all strategic initiative is 40% to the total budget of Org, then the absolute weight of such initiative will be “.40”, etc.

 

Author - Derek Hendrikz
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Synonyms: ACW