ACCA PM (F5) Building Block Model by Fitzgerald and Moon | What is the building block model?  

Here is a draft RU-vid video description for the title "ACCA PM (F5) Building Block Model by Fitzgerald and Moon | What is the building block model?":
Welcome back to my ACCA Performance Management (F5) exam prep series! In today's video, we'll be taking a look at the Building Block Model for costing systems developed by Fitzgerald and Moon.
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The Building Block Model provides a framework for understanding the key components of a costing system and how they fit together. The model identifies four main "building blocks":
1. Resource drivers - How resources (materials, labor, equipment etc.) are used for each activity.
2. Activity drivers - How often activities are performed.
3. Unit-level drivers - How units produced drive costs.
4. Batch-level drivers - How batches drive costs.
By understanding these components, we can develop more accurate costing systems that trace costs to products and services. The Building Block Model has been hugely influential in management accounting.
Overall, the Building Block Model gives us a structured way to think about cost behavior and assign costs more accurately. This helps businesses determine precise product and service costs for pricing and decision-making.
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