> ## Content Index > Fetch the complete content index at: https://abundance.alloconomy.com/llms.txt > Use this file to discover other available public pages before exploring further. # Count the Thing That Creates the Work - URL: https://abundance.alloconomy.com/alloconomy/abc-04-count-the-work/ - Published: 2026-10-09T14:07:47.000Z - Updated: 2026-10-29T20:18:41.000Z - Description: A parcel count can help explain packing, but not how much shelf space a parcel occupies. Choosing the right measure is the heart of a useful cost model. - Author: Sathya Narayanan - Tags: Alloconomy, Foundations, Activity-Based Costing, #series-detail Foundations · Mental model 4 ## Follow the work: ten simple ideas 1. Start here[The ten-idea cheat sheet](https://abundance.alloconomy.com/alloconomy/activity-based-costing/)A simple map of the work behind a price. 2. Idea 1[Costs follow work](https://abundance.alloconomy.com/alloconomy/abc-01-costs-follow-work/)Connect a customer promise to the tasks behind it. 3. Idea 2[Different levels of work](https://abundance.alloconomy.com/alloconomy/abc-02-different-levels/)Find what makes an activity repeat. 4. Idea 3[Averages hide differences](https://abundance.alloconomy.com/alloconomy/abc-03-averages-hide-differences/)Compare equal shares with actual use of shared work. 5. Idea 4**Choose a useful measure**Current essayMatch the measure to the activity it explains. 6. Idea 5[Available and used capacity](https://abundance.alloconomy.com/alloconomy/abc-05-ready-and-used/)Separate available time from time used by customers. 7. Idea 6[Extra steps add up](https://abundance.alloconomy.com/alloconomy/abc-06-extra-steps/)Build a job from its ordinary steps and additions. 8. Idea 7[Follow the customer journey](https://abundance.alloconomy.com/alloconomy/abc-07-whole-customer-journey/)Look at the help before and after a sale. 9. Idea 8[Ask what actually changes](https://abundance.alloconomy.com/alloconomy/abc-08-what-actually-changes/)Compare the money that changes under a decision. 10. Idea 9[Use the time you free](https://abundance.alloconomy.com/alloconomy/abc-09-give-saved-time-a-job/)Turn faster work into a chosen benefit. 11. Idea 10[Keep the model useful](https://abundance.alloconomy.com/alloconomy/abc-10-keep-it-useful/)Measure enough to support the decision, then improve it. ## Shoes are a poor measure of painting Maya wants to estimate how much paint two walls need. She could count the shoes worn by the people in the room. That number is easy to collect, but it tells her almost nothing about paint. Wall area is a much better measure. More area usually needs more paint. ABC also needs useful measures. Accountants call one of these measures a **cost driver**. For this series, think of it as the count that helps explain how much of an activity is needed. [![PACKING: Orders packed: Count similar packing jobs; STORAGE: Space × time: Big box or small? How long?; SUPPORT: Minutes helping: Short question or long call?](https://storage.ghost.io/c/f5/a9/f5a9f801-5a10-44d6-b07c-6658660be1a9/content/images/2026/10/04-abc-04-count-the-work.png)](https://storage.ghost.io/c/f5/a9/f5a9f801-5a10-44d6-b07c-6658660be1a9/content/images/2026/10/04-abc-04-count-the-work.png?ref=abundance.alloconomy.com) A useful measure follows the resource being used. Numerical examples are illustrative; actual business economics require case-by-case analysis. [Open full-size infographic](https://storage.ghost.io/c/f5/a9/f5a9f801-5a10-44d6-b07c-6658660be1a9/content/images/2026/10/04-abc-04-count-the-work.png?ref=abundance.alloconomy.com). ## Choose the measure after naming the job For similar packing jobs, number of orders might work. For support calls that vary greatly in length, minutes may be better than number of calls. For storage, both the space occupied and the time it stays occupied matter. A measure is a useful explanation to check, not a magic answer. Watch a few jobs. Ask the people doing them what takes time. Compare the measure with the work. ## A small fulfillment calculation Suppose a packing activity costs $120 for 60 similar orders, and those orders use all the packing capacity in this exercise. The rate is **$120 ÷ 60 = $2 per order**. A seller with 10 orders is assigned **10 × $2 = $20** of that activity cost. That rate fits the example because the packing jobs are similar. It would be a poor fit if one order needed one minute and another needed half an hour. Now consider storage. A large box and a tiny box each count as “one box.” Yet they occupy different amounts of shelf space. If our question concerns storage, counting boxes alone hides something important. Walmart Fulfillment Services' [pricing information](https://marketplace.walmart.com/walmart-fulfillment-services/?ref=abundance.alloconomy.com) separates storage from fulfillment. A provider's price is what it charges, however; it is not proof of its exact internal cost. ## Apply it to streaming and software For a YouTube or Netflix example, viewing time could help describe video-delivery activity. It would not by itself explain every job involved in running the service, such as making a title available or helping an account holder. For a SaaS business, customer count might help describe account setup when accounts are similar. Storage used might help explain data-storage resources. Support minutes might help explain the help team. The point is to avoid forcing every kind of work through one number. We are choosing measures for specific activities, not declaring a universal “best driver.” ## Try it A hotel listing site checks new property listings. Some checks take 5 minutes; others take 30\. Which gives a better first picture of review-team use: number of beds in the hotel, number of listings or review minutes? **Answer:** review minutes most directly describe this team's time in the stated example. **Carry this idea:** name the resource, name the work, then choose a count that connects them. ## Source [OpenStax's ABC chapter](https://openstax.org/books/principles-managerial-accounting/pages/6-3-calculate-activity-based-product-costs?ref=abundance.alloconomy.com) explains activity pools, drivers and rates. The examples above are illustrative choices to investigate, not claims about companies' internal accounting. --- [← Averages hide differences](https://abundance.alloconomy.com/alloconomy/abc-03-averages-hide-differences/) · [Available and used capacity →](https://abundance.alloconomy.com/alloconomy/abc-05-ready-and-used/)