What measure of cost is appropriate for unbundling? (cont.)

The components of cost include:

• Direct costs: Costs of resources which are tracked by service or function and can be directly assigned
• Indirect costs: Costs of resources which are not tracked by service or function and must be allocated to services
• Common costs: Costs of resources which are used for more than one service and which must be allocated
• Attributable overheads: Costs of corporate level resources which are impacted and may be allocated
• Non-attributable overheads: Costs of corporate level resources which are not impacted and can be ignored

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