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ROCE and business plan - continued

I continued to the last sentence: "It remains to be interdependence between the cost drivers (which is challenging)

We then but for the famous motto "keep it simple decision:

• There are no multiple dependencies. Ie, a "secondary" cost driver is dependent on one primary.
• We assume causality, and not just correlations (I deprive myself of the discourse, whether causality or "only" correlations are detectable). That is, the secondary cost driver is a lot - in the first draft - linear function of the primary.
• A cost driver is the moment in which a function is defined for him, to a secondary and is not derived from a direct product relationship (closed to traffic).
• There can be no second function can be defined (see above).

means there are three categories of cost drivers:

• Primary product without reference - they are explicitly planned.
• primary product with respect - they are derived from the planned quantity of the products.
• Secondary - they are derived from the primary cost drivers.

Thus, the simulation model for the income side of the ROCE tree done.