Final answer:
A rollup chart of accounts is used to compare cost accounts between organizational units and deliverables, providing a comprehensive view of financial data across projects and departments.
Step-by-step explanation:
When comparing the cost accounts between organizational units and deliverables, a rollup chart of accounts is typically used. This tool provides a systematic way to view the aggregation of financial information. A rollup chart of accounts can help a company analyze costs at different levels by rolling them up into categories for an organization-wide review. This includes comparing direct and indirect costs across various projects and departments within the company.
For instance, to analyze and control costs effectively, a business might create a table displaying various economic metrics such as output, total cost, marginal cost, average cost, variable cost, and average variable cost. This table provides valuable insight for making strategic decisions regarding production levels and pricing. It also aids in determining how efficiently resources are being used and how costs fluctuate with changes in production output.
The 'Productivity and Costs' link referred to would offer comprehensive data that contributes to such insights. This data is crucial for understanding how labor costs, productivity, and profits are interrelated within the business sector. Such a resource can facilitate more accurate cost comparisons and financial planning.