Costing audit trail
You can see the constituents of the costs of the Administration cost pool. For example the Accounting fees expense or cost line was responsible for 22,48% of the costs of the Administration cost pool. Other contributors to the cost pool were expenses like bank charges, depreciation, electricity, general insurance etc. Administration is an activity based costing activity that is a supporting role in the firms ability to sell their goods and services.
Audit trails via Tertiary Secondary and Primary cost pools
Sometimes expenses are allocated via a number of pools to the cost object. These pools could be primary, secondary or tertiary pools. In this instance Administration is a Tertiary pool so there will be costs allocated from the Cost lines into the pool and then allocated out again to a Secondary pool and then a Primary pool and finally to the Cost Object.
Tracing the costs trail is possible from Lines to Objects in reverse for both Cost objects and Composite cost objects