Seeing labor more clearly through modeling
Effective cost modeling brings clarity to how labor is sourced, deployed and measured across different arrangements, and gives practitioners the structure they need to build more specific views when a use case requires more than finance‑level precision. Clearer labor insights support stronger, more reliable investment decisions.
The Lineage of Accounting Concepts Leading Up to AI Costing
Even though AI token costing feels new, parts of it resemble patterns we’ve worked with for years in Activity Based Costing and Job Order Costing. When we view tokens as units of work, the lineage becomes easier to see. This post offers that perspective as one way to ground the discussion and support the shared learning happening across the field.
A Practitioner’s Introduction to Activity‑Based Costing (ABC)
Activity Based Costing is not a new method to learn. It is the mechanism behind the frameworks we already use. When we understand how resources flow into activities and how those activities support services, the logic behind ITFM, TBM, and FinOps becomes much clearer.