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CCH Tagetik non-prescriptive approach gives organizations the flexibility to use activity-based costing to plan an account 

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from more accurate indirect expenses beyond traditional allocation methodologies. On this sample form we have the ability to set up new allocation pools, which really aims 

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to break down the activities required to manufacture a specific product or provide a specific service. For each activity we are able to specify the driver that will define 

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how we'll be measuring that activity, for example machine restarts are managed based on the number of set ups, and to finish off our first step of activity-based costing, 

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we can simply define percentages that will drive how the total overhead is initially allocated to these activity pools we've defined. Once our activity pools have been mapped out,

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we now start the second step by assigning these activities to the products we manufacture or the services we render. The key here is to identify how intensive 

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each product is for each activity, meaning for example how many units of 'machine restarts', each product is using. In this example, for instance, we're seeing that monitors

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requires machine restarts once every 100 units produced, while video projectors, being a more intensive build, requires restart 80 times

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for every 100 units built. When clicking on save, our activity-based costing allocation engine is triggered to assign overhead expenses to each product.

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In this example we're seeing that for monitors were allocated about $20.000 to machine restarts, while for video projectors were allocated nearly

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$100.000 for the same activity, even if were selling considerably less units of projectors than monitors. This is the exact benefit of ABC,

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while in traditional allocation we would have assigned overhead expenses to the product that sold the most units, in this case monitors, with activity-based costing

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we're focusing on the true cost associated to each product or service using how resource-intensive they are. This ultimately gives us a more accurate measure of the indirect cost.