# How Can Activity Based Costing Reveal the True Cost of an Rfp? ▴ Question

**Published:** 2025-08-07
**Categories:** Question

---

![A metallic structural component interlocks with two black, dome-shaped modules, each displaying a green data indicator. This signifies a dynamic RFQ protocol within an institutional Prime RFQ, enabling high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/modular-rfq-protocol-engine-for-digital-asset-derivatives-prime-os.jpg)

![A teal-blue textured sphere, signifying a unique RFQ inquiry or private quotation, precisely mounts on a metallic, institutional-grade base. Integrated into a Prime RFQ framework, it illustrates high-fidelity execution and atomic settlement for digital asset derivatives within market microstructure, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-prime-os-execution-1.jpg)

## Concept

![A sleek, open system showcases modular architecture, embodying an institutional-grade Prime RFQ for digital asset derivatives. Distinct internal components signify liquidity pools and multi-leg spread capabilities, ensuring high-fidelity execution via RFQ protocols for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-modularity-unveiled.jpg)

## The RFP as a System of Hidden Costs

A Request for Proposal (RFP) is frequently perceived as a linear, administrative task, a necessary precursor to a transaction. This view, however, obscures the reality of the RFP as a complex, resource-intensive project. It is a convergence point for an organization’s most valuable assets ▴ the time and intellectual capital of its senior strategists, technical experts, legal counsel, and sales leadership. Traditional accounting methods, which often allocate overhead costs with a broad brush, fail to capture this convergence.

They render the true cost of pursuing a single RFP almost entirely invisible, treating the immense effort involved as a general cost of doing business. This opacity prevents any meaningful analysis of what is arguably one of the most critical pre-sales activities a company undertakes. Without a precise understanding of the resources consumed, an organization operates in a state of strategic blindness, unable to distinguish between a value-generating opportunity and a resource-draining exercise.

The operational reality is that no two RFPs demand the same level of effort. One may require a straightforward response assembled from existing materials, while another might necessitate weeks of bespoke [solution architecture](https://prime.greeks.live/area/solution-architecture/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), complex pricing models, and intensive legal negotiation. A [costing system](https://prime.greeks.live/question/what-are-the-most-common-political-and-organizational-challenges-when-implementing-a-data-silo-costing-initiative/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that assigns the same overhead to both is not merely inaccurate; it is actively misleading. It creates a distorted picture of profitability, potentially leading a company to celebrate a “win” that was, in fact, a significant financial loss when the full cost of acquisition is considered.

This fundamental miscalculation is where the operational and strategic value of a more granular costing methodology becomes apparent. The objective is to build a system that reflects the genuine economic activity within the organization, linking resource consumption directly to the specific outputs that drive the business forward.

> A precise costing model moves the RFP from an administrative expense to a quantifiable strategic investment.

![A transparent, multi-faceted component, indicative of an RFQ engine's intricate market microstructure logic, emerges from complex FIX Protocol connectivity. Its sharp edges signify high-fidelity execution and price discovery precision for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-best-execution.jpg)

## Activity Based Costing as a Costing System

[Activity-Based Costing](https://prime.greeks.live/area/activity-based-costing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (ABC) provides a system for achieving this level of clarity. It operates on a simple but powerful premise ▴ activities consume resources, and products or services (in this case, an RFP response) consume activities. By tracing costs from the general ledger to specific, identifiable business activities, and then from those activities to the final cost object, ABC creates a transparent and defensible map of how an organization’s resources are truly deployed.

This method moves beyond the arbitrary allocations of traditional costing, which might use a single, volume-based driver like revenue or headcount to distribute vast pools of indirect costs. Instead, ABC identifies the specific actions that generate costs and uses a corresponding “[cost driver](https://prime.greeks.live/area/cost-driver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” to assign them.

For an RFP, this means deconstructing the entire response process into a series of discrete activities. Each activity represents a unit of work that consumes resources. These activities can range from the initial “Bid/No-Bid” analysis to “Technical [Solution Design](https://prime.greeks.live/area/solution-design/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite),” “Pricing Formulation,” “[Legal Review](https://prime.greeks.live/question/what-is-the-legal-standard-of-review-for-a-successful-challenge-to-an-rfp-scoring-decision/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite),” and “Final Document Production.” For each of these activities, a specific cost driver is identified that best represents the consumption of resources. For “Legal Review,” the cost driver might be the number of hours spent by the legal team.

For “Technical Solution Design,” it could be the number of engineer-hours or a complexity score. This two-stage process ▴ first pooling costs into activities and then allocating those costs based on usage ▴ provides a far more accurate and actionable picture of the RFP’s true cost profile. It transforms the abstract concept of “overhead” into a concrete, measurable, and manageable set of operational expenditures.

![A precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

![A sleek, institutional-grade device, with a glowing indicator, represents a Prime RFQ terminal. Its angled posture signifies focused RFQ inquiry for Digital Asset Derivatives, enabling high-fidelity execution and precise price discovery within complex market microstructure, optimizing latent liquidity](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-terminal-facilitating-high-fidelity-price-discovery-and-optimal-liquidity-aggregation.jpg)

## Strategy

![An Institutional Grade RFQ Engine core for Digital Asset Derivatives. This Prime RFQ Intelligence Layer ensures High-Fidelity Execution, driving Optimal Price Discovery and Atomic Settlement for Aggregated Inquiries](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-high-fidelity.jpg)

## From Cost Obscurity to Strategic Clarity

The implementation of an Activity-Based Costing system for the [RFP process](https://prime.greeks.live/area/rfp-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a strategic initiative aimed at transforming data into decisions. Traditional costing models treat the pursuit of all opportunities as financially equal, obscuring the vast differences in effort required. This lack of visibility forces reliance on intuition and historical precedent, which are often poor guides in a dynamic market. An ABC framework replaces this ambiguity with a quantitative foundation for strategic [resource allocation](https://prime.greeks.live/area/resource-allocation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

It provides an empirical basis for answering fundamental business questions ▴ Which types of RFPs generate the highest return on our pre-sales investment? Where are the bottlenecks in our response process? Are we pricing our proposals to reflect the true cost of acquisition? By answering these questions, an organization can begin to architect a more deliberate and profitable business development strategy.

This strategic shift manifests in several key areas. The most immediate is the “Go/No-Go” decision-making process. With a clear understanding of the expected cost to prepare a response, based on the RFP’s complexity and requirements, leadership can make a rational, data-informed judgment about whether to commit resources. An opportunity that seems attractive on the surface might be revealed as a potential loss leader once the significant cost of the required solution engineering and legal review is factored in.

This prevents the organization from dedicating its most valuable resources to low-probability or low-margin pursuits. It institutionalizes a discipline of qualifying opportunities based on a sound financial case, not just on the enthusiasm of the sales team.

> Understanding the true cost of an RFP enables an organization to strategically select which games to play, rather than simply playing all of them.

![A bifurcated sphere, symbolizing institutional digital asset derivatives, reveals a luminous turquoise core. This signifies a secure RFQ protocol for high-fidelity execution and private quotation](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-orchestration.jpg)

## A Comparative Analysis of Costing Systems

The strategic value of Activity-Based Costing becomes most evident when compared directly with traditional, volume-based costing methods. The latter, while simpler to implement, provides a distorted view of reality that can lead to systemic strategic errors. The following table illustrates the fundamental differences in their approach and the resulting strategic implications.

| Attribute | Traditional Costing System | Activity-Based Costing (ABC) System |
| --- | --- | --- |
| Cost Allocation Basis | Uses a single, arbitrary volume-based measure (e.g. revenue, direct labor hours) to allocate all overhead costs. | Uses multiple activity-based cost drivers (e.g. number of revisions, hours of engineering, legal review complexity) to trace costs to specific activities. |
| Accuracy for RFPs | Low. Treats all RFPs as if they consume overhead resources at the same rate, ignoring complexity. | High. Accurately assigns costs based on the actual activities and resources each unique RFP consumes. |
| Strategic Insight | Minimal. Provides a single, blended “cost of sales” figure that hides process inefficiencies and the true cost of individual pursuits. | Rich. Reveals the cost of each stage of the RFP process, identifying bottlenecks and high-cost activities. Enables profitability analysis per RFP. |
| Decision-Making Support | Leads to suboptimal decisions. Simple RFPs may be over-costed, while complex RFPs are systematically under-costed. | Supports superior decisions. Provides the data for informed Go/No-Go choices, process improvement initiatives, and strategic pricing. |
| Focus | Focuses on inventory valuation and external financial reporting. | Focuses on internal management, cost control, and strategic analysis. |

![A central RFQ aggregation engine radiates segments, symbolizing distinct liquidity pools and market makers. This depicts multi-dealer RFQ protocol orchestration for high-fidelity price discovery in digital asset derivatives, highlighting diverse counterparty risk profiles and algorithmic pricing grids](https://options.greeks.live/wp-content/uploads/2025/07/centralized-digital-asset-rfq-orchestration-for-multi-venue-liquidity-aggregation-and-high-fidelity-execution-across-diverse-counterparties.jpg)

## Cultivating Process Intelligence

Beyond individual bid decisions, an ABC system fosters a culture of continuous improvement by providing detailed [process intelligence](https://prime.greeks.live/area/process-intelligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). When managers can see that a particular activity, such as “Multi-departmental Review Cycles,” is consistently a major cost center, they are empowered to investigate the root cause. Is the initial solution design flawed, leading to excessive revisions? Is communication between departments inefficient?

Are the handoffs poorly defined? The ABC data acts as a diagnostic tool, pointing directly to the most expensive, and often most broken, parts of the RFP response engine. This allows for targeted interventions, such as developing better templates, improving inter-departmental workflows, or investing in better collaboration software. Over time, the organization can use the ABC model to track the effectiveness of these interventions, measuring the reduction in cost per RFP as a key performance indicator of operational efficiency. This creates a virtuous cycle ▴ the system reveals inefficiencies, management takes action, and the system then validates the impact of that action.

![Sleek, modular system component in beige and dark blue, featuring precise ports and a vibrant teal indicator. This embodies Prime RFQ architecture enabling high-fidelity execution of digital asset derivatives through bilateral RFQ protocols, ensuring low-latency interconnects, private quotation, institutional-grade liquidity, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-system-interface-for-digital-asset-derivatives-execution.jpg)

![A sleek, white, semi-spherical Principal's operational framework opens to precise internal FIX Protocol components. A luminous, reflective blue sphere embodies an institutional-grade digital asset derivative, symbolizing optimal price discovery and a robust liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-5.jpg)

## Execution

![Visualizes the core mechanism of an institutional-grade RFQ protocol engine, highlighting its market microstructure precision. Metallic components suggest high-fidelity execution for digital asset derivatives, enabling private quotation and block trade processing](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-core-1.jpg)

## The Operational Playbook for ABC Implementation

Deploying an Activity-Based Costing system for the RFP process requires a disciplined, methodical approach. It is an undertaking that bridges finance, operations, and sales, demanding a cross-functional commitment to data integrity and process analysis. The following steps provide a structured pathway for implementation, transforming the theoretical model into a functioning decision-support system.

- 
**Define the Scope and Objectives.** The initial step involves clearly articulating the goals of the project. Is the primary objective to improve Go/No-Go decisions, to support more accurate pricing, or to identify process inefficiencies? Defining the scope is also critical.
The analysis might initially focus on a single business unit or product line before a broader rollout. Securing executive sponsorship at this stage is essential, as the project will require resources and cooperation from across the organization.

- 
**Identify RFP-Related Activities.** This is the foundational mapping stage of the process. A cross-functional team, including representatives from sales, engineering, legal, finance, and management, should collaborate to deconstruct the entire RFP lifecycle into a comprehensive list of activities. This is not a high-level overview; it requires granular detail.
The output of this stage is an “[Activity Dictionary](https://prime.greeks.live/area/activity-dictionary/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite),” which forms the backbone of the entire costing model. An example of this is detailed in the table below.

- 
**Trace Resources to Activities.** Once the activities are defined, the next step is to determine the cost of the resources consumed by them. This involves analyzing the general ledger and assigning costs from departments like Sales, Marketing, Engineering, and Legal to the activities they perform. The primary resource cost is typically personnel, calculated from salaries, benefits, and payroll taxes.
Other resource costs can include software licenses for [proposal management](https://prime.greeks.live/area/proposal-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) tools, depreciation on computer equipment, and a proportional share of facility costs (rent, utilities). These costs are collected into “cost pools” that correspond to the identified activities.

- 
**Select Cost Drivers.** For each activity [cost pool](https://prime.greeks.live/area/cost-pool/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), the team must identify a cost driver that provides a logical and measurable link between the activity and the consumption of its resources. The choice of cost driver is critical to the accuracy of the system. It must be a quantifiable measure that is practical to track. For example, for the “Legal Review” activity, a logical cost driver is “hours of legal time.” For “Document Production,” a suitable driver might be the “number of pages” or “number of graphics created.”

- 
**Calculate the Cost Driver Rate.** This is a straightforward calculation. For each activity, the [total cost](https://prime.greeks.live/area/total-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) in the activity’s cost pool is divided by the total volume of the cost driver. For instance, if the total annual cost of the Legal Review activity pool is $300,000 and the legal team logs 1,500 hours on RFP reviews annually, the cost driver rate is $200 per hour. This rate represents the cost of one unit of the activity.
Cost Driver Rate = Total Cost in Activity Pool / Total Volume of Cost Driver

- 
**Apply Costs to the RFP.** With the cost driver rates established, the final step is to “cost” a specific RFP. As an RFP moves through the response lifecycle, the team tracks the number of cost driver units it consumes for each activity. For example, a complex RFP might consume 40 hours of solution design, 15 hours of legal review, and result in a 100-page document.
The total cost for the RFP is calculated by multiplying the quantity of each cost driver consumed by its corresponding rate and summing the results. This provides the “true” activity-based cost of that specific proposal.

![Abstract geometric planes in teal, navy, and grey intersect. A central beige object, symbolizing a precise RFQ inquiry, passes through a teal anchor, representing High-Fidelity Execution within Institutional Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/rfq-protocols-for-digital-asset-derivatives-high-fidelity-execution-liquidity-aggregation-price-discovery-market-microstructure.jpg)

## Quantitative Modeling and Data Analysis

The core of the ABC execution lies in its quantitative framework. The following tables provide a simplified, illustrative model of how the data flows from resource costs to a final, activity-based [RFP cost](https://prime.greeks.live/area/rfp-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This model demonstrates the system’s ability to translate abstract overhead into a concrete financial figure.

![An abstract, precision-engineered mechanism showcases polished chrome components connecting a blue base, cream panel, and a teal display with numerical data. This symbolizes an institutional-grade RFQ protocol for digital asset derivatives, ensuring high-fidelity execution, price discovery, multi-leg spread processing, and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-1.jpg)

## RFP Activity Dictionary

The first step is to create a definitive list of all activities involved in the RFP process. This requires input from every department that touches the proposal.

| Activity ID | Activity Name | Description | Primary Departments Involved |
| --- | --- | --- | --- |
| RFP-01 | Opportunity Qualification | Initial review of the RFP to determine strategic fit and feasibility, leading to a Go/No-Go decision. | Sales, Management |
| RFP-02 | Solution Architecture & Design | Developing the core technical and operational solution to meet the client’s requirements. | Engineering, Product Management |
| RFP-03 | Content Development & Writing | Writing the narrative, technical specifications, and boilerplate sections of the proposal document. | Proposal Team, Marketing, Engineering |
| RFP-04 | Pricing & Financial Modeling | Calculating the costs, determining the price, and modeling the profitability of the proposed solution. | Finance, Sales |
| RFP-05 | Legal & Compliance Review | Reviewing the proposal for contractual risks, compliance with regulations, and adherence to corporate standards. | Legal |
| RFP-06 | Production & Submission | Formatting, printing, binding, and electronically submitting the final proposal package. | Proposal Team, Administrative |

![Layered abstract forms depict a Principal's Prime RFQ for institutional digital asset derivatives. A textured band signifies robust RFQ protocol and market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-high-fidelity-execution-prime-os-market-microstructure.jpg)

## Cost Driver Rate Calculation

Next, the system calculates a rate for each activity’s cost driver. This rate quantifies the cost of a single unit of that activity.

- 
**Total Cost Pool for Solution Architecture** ▴ $800,000 (salaries, software, overhead)

- 
**Total Annual Engineering Hours on RFPs** ▴ 5,000 hours

- 
**Cost Driver Rate** ▴ $800,000 / 5,000 hours = **$160 per engineering hour**

- 
**Total Cost Pool for Legal Review** ▴ $300,000

- 
**Total Annual Legal Hours on RFPs** ▴ 1,500 hours

- 
**Cost Driver Rate** ▴ $300,000 / 1,500 hours = **$200 per legal hour**

![An institutional-grade platform's RFQ protocol interface, with a price discovery engine and precision guides, enables high-fidelity execution for digital asset derivatives. Integrated controls optimize market microstructure and liquidity aggregation within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/proprietary-institutional-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-execution-and-granular-market-microstructure-analysis-for-prime-os.jpg)

## Predictive Scenario Analysis

To illustrate the system in action, consider a hypothetical company, “Innovate Systems,” which has implemented this ABC model. They receive two RFPs in the same week.

**RFP-A ▴ The Standard Request.** This RFP is from an existing client for a standard product extension. It is well-defined and relatively simple. The required response is straightforward.

**RFP-B ▴ The Complex Opportunity.** This RFP is from a major potential new client for a highly customized, enterprise-level solution. It is a large, prestigious, but technically demanding opportunity. The requirements are complex and involve multiple integrations with legacy systems.

Under their old costing system, Innovate Systems would have allocated a similar, small percentage of sales and administrative overhead to both proposals, making RFP-B appear immensely more profitable due to its large potential contract value. The ABC system, however, reveals a different story.

The team tracks the resources consumed by each RFP:

- 
**RFP-A (Standard)** ▴ 

<li>Opportunity Qualification ▴ 2 hours

- Solution Architecture ▴ 10 engineering hours

- Content Development ▴ 25 pages

- Pricing & Financial Modeling ▴ 4 finance hours

- Legal & Compliance Review ▴ 2 legal hours

- Production & Submission ▴ 1 hour

</li>
- 
**RFP-B (Complex)** ▴ 

<li>Opportunity Qualification ▴ 15 hours

- Solution Architecture ▴ 120 engineering hours

- Content Development ▴ 200 pages

- Pricing & Financial Modeling ▴ 30 finance hours

- Legal & Compliance Review ▴ 25 legal hours

- Production & Submission ▴ 8 hours

</li>

When the cost driver rates are applied, the financial picture becomes sharp. The cost of pursuing RFP-A is calculated to be approximately $4,500. It is a low-cost, low-risk endeavor. The cost of pursuing RFP-B, however, is a staggering $38,000.

This figure, which was previously hidden within corporate overhead, forces a serious strategic conversation. The management team must now weigh this substantial, concrete investment against the probability of winning the contract and the projected long-term profitability. They might decide the risk is justified, but they proceed with a full understanding of the financial stake. They might also use this data to negotiate the terms or to decide that, despite the potential revenue, the cost of the pursuit is too high given the competitive landscape. The ABC system did not make the decision for them; it provided the intelligence required to make a truly strategic one.

![Intricate dark circular component with precise white patterns, central to a beige and metallic system. This symbolizes an institutional digital asset derivatives platform's core, representing high-fidelity execution, automated RFQ protocols, advanced market microstructure, the intelligence layer for price discovery, block trade efficiency, and portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

## System Integration and Technological Foundation

A robust ABC system is not built on spreadsheets alone, especially in a large organization. Its successful, ongoing operation depends on a foundation of integrated business systems. The goal is to automate data collection as much as possible to minimize the administrative burden and ensure data integrity. The key components of this technological architecture include:

- **Time Tracking Systems** ▴ For professional services and knowledge-based work, time is the most critical resource. A reliable time-tracking system, integrated into the daily workflow of engineers, lawyers, and proposal writers, is essential. This system must allow employees to easily log time against specific projects or, even more granularly, against specific RFP activity codes. This provides the raw data for the most significant cost drivers. 

- **Enterprise Resource Planning (ERP) and Accounting Systems** ▴ The ERP or general ledger is the source of all financial data. The ABC system needs to pull salary, benefit, and other departmental overhead costs directly from these systems of record. An integration ensures that the resource cost pools are always based on the most current financial data. 

- **Project Management & Proposal Software** ▴ Modern project management or dedicated RFP software can serve as a central hub for tracking many of the cost driver metrics. These platforms can track the number of revisions, document page counts, and the completion of various milestones, automating the collection of non-time-based driver data. 

- **Business Intelligence (BI) and Analytics Platforms** ▴ The final output of the ABC system is data. A BI platform is essential for transforming this data into actionable insights. Dashboards can be created for management to visualize the cost of the RFP pipeline, compare the costs of different types of proposals, and track the efficiency of the response process over time. This is where the raw numbers become strategic intelligence. 

The integration of these systems creates a data pipeline. Financial data flows from the ERP into the ABC model. Activity and driver data flows from time-tracking and project management tools.

The ABC model, which can be housed within a dedicated costing application or a sophisticated BI tool, processes this information and outputs the cost analysis to dashboards and reports. This technological foundation ensures the ABC system is a dynamic, living tool for management, not a static, periodic accounting exercise.

![A polished blue sphere representing a digital asset derivative rests on a metallic ring, symbolizing market microstructure and RFQ protocols, supported by a foundational beige sphere, an institutional liquidity pool. A smaller blue sphere floats above, denoting atomic settlement or a private quotation within a Principal's Prime RFQ for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-market-microstructure-and-rfq-protocols.jpg)

## References

- Kaplan, Robert S. and Steven R. Anderson. “Time-driven activity-based costing.” Harvard business review 82.11 (2004) ▴ 131-138.

- Cooper, Robin, and Robert S. Kaplan. “Measure costs right ▴ make the right decisions.” Harvard business review 66.5 (1988) ▴ 96-103.

- Johnson, H. Thomas, and Robert S. Kaplan. Relevance lost ▴ the rise and fall of management accounting. Harvard Business Press, 1987.

- Drury, Colin. Management and cost accounting. Cengage Learning EMEA, 2007.

- Turney, Peter B. B. “Activity-based costing ▴ The performance breakthrough.” Cost Technology (1991).

- Anderson, Steven R. and Robert S. Kaplan. “Time-driven activity-based costing ▴ A simpler and more powerful path to higher profits.” Harvard Business School Press, 2007.

- Gosselin, Maurice. “A review of activity-based costing ▴ technique, implementation, and consequences.” Handbooks of Management Accounting Research 3 (2007) ▴ 641-691.

- Krumwiede, Kip R. “The implementation stages of activity-based costing and the impact of contextual and organizational factors.” Journal of management accounting research 10 (1998) ▴ 239.

![A transparent, precisely engineered optical array rests upon a reflective dark surface, symbolizing high-fidelity execution within a Prime RFQ. Beige conduits represent latency-optimized data pipelines facilitating RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-architecture.jpg)

## Reflection

![A metallic disc, reminiscent of a sophisticated market interface, features two precise pointers radiating from a glowing central hub. This visualizes RFQ protocols driving price discovery within institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## Beyond the Numbers a System of Intelligence

The true value of an Activity-Based Costing system transcends the financial outputs it generates. The calculated cost of an RFP is a data point, but the underlying structure of the system itself represents a new form of organizational intelligence. It establishes a permanent, dynamic link between financial resources and operational activities. This framework provides a common language for departments that are often siloed, allowing a head of engineering, a chief financial officer, and a vice president of sales to have a single, coherent conversation about the allocation of corporate assets.

The system does not merely provide answers; it changes the quality of the questions the organization asks itself. The focus shifts from “Did we win?” to “Was this a win worth having?” and from “How can we sell more?” to “How can we sell more, more profitably?”

![Two distinct, polished spherical halves, beige and teal, reveal intricate internal market microstructure, connected by a central metallic shaft. This embodies an institutional-grade RFQ protocol for digital asset derivatives, enabling high-fidelity execution and atomic settlement across disparate liquidity pools for principal block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-prime-os.jpg)

## Calibrating the Business Development Engine

Ultimately, this methodology is about calibrating the organization’s business development engine. Every company has finite resources, and the decision to pursue one opportunity is also a decision to forgo another. An ABC system illuminates the true opportunity cost associated with each pursuit. It provides the control system necessary to direct the firm’s most potent resources toward the opportunities that offer the greatest strategic and financial return.

Viewing the RFP process through this lens transforms it from a reactive, tactical necessity into a proactive, strategic weapon. The ultimate advantage is not just knowing the cost of an RFP; it is the institutional capability to consistently invest resources where they will generate the most value.

![The image depicts two intersecting structural beams, symbolizing a robust Prime RFQ framework for institutional digital asset derivatives. These elements represent interconnected liquidity pools and execution pathways, crucial for high-fidelity execution and atomic settlement within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-cross-market-execution-architecture-for-digital-assets.jpg)

## Glossary

<a href="https://prime.greeks.live/area/solution-architecture/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated institutional digital asset derivatives platform unveils its core market microstructure. Intricate circuitry powers a central blue spherical RFQ protocol engine on a polished circular surface](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-prime-os-unveiling-rfq-protocol-engine-market-microstructure-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## Solution Architecture

Meaning ▴ Solution architecture defines the structural layout and behavior of a specific system designed to address a particular business problem or fulfill a set of requirements. </a><a href="https://prime.greeks.live/question/what-are-the-most-common-political-and-organizational-challenges-when-implementing-a-data-silo-costing-initiative/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated metallic mechanism with integrated translucent teal pathways on a dark background. This abstract visualizes the intricate market microstructure of an institutional digital asset derivatives platform, specifically the RFQ engine facilitating private quotation and block trade execution](https://options.greeks.live/wp-content/uploads/2025/07/systemic-framework-for-institutional-digital-asset-derivatives-rfq-price-discovery-and-atomic-settlement.jpg)

## Costing System

A data silo costing initiative's main challenge is navigating the political landscape of information control and overcoming organizational inertia. </a><a href="https://prime.greeks.live/area/activity-based-costing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central glowing core within metallic structures symbolizes an Institutional Grade RFQ engine. This Intelligence Layer enables optimal Price Discovery and High-Fidelity Execution for Digital Asset Derivatives, streamlining Block Trade and Multi-Leg Spread Atomic Settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-core.jpg)

## Activity-Based Costing

Meaning ▴ Activity-Based Costing (ABC) in the crypto domain is a cost accounting method that identifies discrete activities within a digital asset operation, attributes resource costs to these activities, and subsequently allocates activity costs to specific cost objects such as individual transactions, smart contract executions, or trading strategies. </a><a href="https://prime.greeks.live/area/cost-driver/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An intricate, high-precision mechanism symbolizes an Institutional Digital Asset Derivatives RFQ protocol. Its sleek off-white casing protects the core market microstructure, while the teal-edged component signifies high-fidelity execution and optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-market-microstructure-optimization.jpg)

## Cost Driver

Meaning ▴ A Cost Driver is any factor that causes a change in the total cost of an activity or resource. </a><a href="https://prime.greeks.live/area/solution-design/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, futuristic institutional grade platform with a translucent teal dome signifies a secure environment for private quotation and high-fidelity execution. A dark, reflective sphere represents an intelligence layer for algorithmic trading and price discovery within market microstructure, ensuring capital efficiency for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-execution-for-institutional-digital-asset-derivatives-1.jpg)

## Solution Design

Meaning ▴ Solution design is the systematic process of defining the architecture, components, modules, interfaces, and data structures required for a system to satisfy specified requirements. </a><a href="https://prime.greeks.live/question/what-is-the-legal-standard-of-review-for-a-successful-challenge-to-an-rfp-scoring-decision/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A glossy, teal sphere, partially open, exposes precision-engineered metallic components and white internal modules. This represents an institutional-grade Crypto Derivatives OS, enabling secure RFQ protocols for high-fidelity execution and optimal price discovery of Digital Asset Derivatives, crucial for prime brokerage and minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-platform-revealing-core-rfq-protocol-mechanisms-for-optimized-high-fidelity-execution.jpg)

## Legal Review

A successful challenge to an RFP scoring decision requires a showing that the agency's evaluation was arbitrary, capricious, or contrary to law. </a><a href="https://prime.greeks.live/area/resource-allocation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, bi-component digital asset derivatives engine reveals its intricate core, symbolizing an advanced RFQ protocol. This Prime RFQ component enables high-fidelity execution and optimal price discovery within complex market microstructure, managing latent liquidity for institutional operations](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimal-execution.jpg)

## Resource Allocation

Meaning ▴ Resource Allocation, in the context of crypto systems architecture and institutional operations, is the strategic process of distributing and managing an organization's finite resources ▴ including computational power, capital, human talent, network bandwidth, and even blockchain gas limits ▴ among competing demands. </a><a href="https://prime.greeks.live/area/rfp-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Stacked, modular components represent a sophisticated Prime RFQ for institutional digital asset derivatives. Each layer signifies distinct liquidity pools or execution venues, with transparent covers revealing intricate market microstructure and algorithmic trading logic, facilitating high-fidelity execution and price discovery within a private quotation environment](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-framework.jpg)

## Rfp Process

Meaning ▴ The RFP Process describes the structured sequence of activities an organization undertakes to solicit, evaluate, and ultimately select a vendor or service provider through the issuance of a Request for Proposal. </a><a href="https://prime.greeks.live/area/process-intelligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A proprietary Prime RFQ platform featuring extending blue/teal components, representing a multi-leg options strategy or complex RFQ spread. The labeled band 'F331 46 1' denotes a specific strike price or option series within an aggregated inquiry for high-fidelity execution, showcasing granular market microstructure data points](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-1.jpg)

## Process Intelligence

Meaning ▴ Process Intelligence, in the crypto and blockchain domain, refers to the analytical capability to collect, analyze, and interpret data generated by on-chain and off-chain operational workflows to gain actionable insights into system performance. </a><a href="https://prime.greeks.live/area/activity-dictionary/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A cutaway view reveals an advanced RFQ protocol engine for institutional digital asset derivatives. Intricate coiled components represent algorithmic liquidity provision and portfolio margin calculations](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-digital-asset-derivatives-core-internal-mechanism-visualized.jpg)

## Activity Dictionary

Meaning ▴ In the context of crypto trading and Request for Quote (RFQ) systems, an Activity Dictionary is a formalized, standardized catalog of permissible actions, operations, or events within a specific trading platform, protocol, or smart contract ecosystem. </a><a href="https://prime.greeks.live/area/proposal-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two distinct ovular components, beige and teal, slightly separated, reveal intricate internal gears. This visualizes an Institutional Digital Asset Derivatives engine, emphasizing automated RFQ execution, complex market microstructure, and high-fidelity execution within a Principal's Prime RFQ for optimal price discovery and block trade capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-automated-rfq-execution-microstructure-revealing-principal-prime-os-intelligence-layer-for-high-fidelity-execution-and-capital-efficiency.jpg)

## Proposal Management

Meaning ▴ Proposal Management, within the intricate context of institutional crypto operations, denotes the systematic and structured process encompassing the creation, submission, meticulous tracking, and objective evaluation of formal proposals. </a><a href="https://prime.greeks.live/area/cost-pool/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precisely balanced transparent sphere, representing an atomic settlement or digital asset derivative, rests on a blue cross-structure symbolizing a robust RFQ protocol or execution management system. This setup is anchored to a textured, curved surface, depicting underlying market microstructure or institutional-grade infrastructure, enabling high-fidelity execution, optimized price discovery, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-engineered-rfq-block-trade-execution-for-digital-asset-derivatives.jpg)

## Cost Pool

Meaning ▴ A cost pool, in the context of crypto infrastructure, investing operations, or decentralized autonomous organizations (DAOs), represents an aggregation of various expenditures directly or indirectly associated with a specific activity, project, or function. </a><a href="https://prime.greeks.live/area/total-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A beige probe precisely connects to a dark blue metallic port, symbolizing high-fidelity execution of Digital Asset Derivatives via an RFQ protocol. Alphanumeric markings denote specific multi-leg spread parameters, highlighting granular market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-system-execution-hub.jpg)

## Total Cost

Meaning ▴ Total Cost represents the aggregated sum of all expenditures incurred in a specific process, project, or acquisition, encompassing both direct and indirect financial outlays. </a><a href="https://prime.greeks.live/area/rfp-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Polished metallic pipes intersect via robust fasteners, set against a dark background. This symbolizes intricate Market Microstructure, RFQ Protocols, and Multi-Leg Spread execution](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-metallic-nodes-illustrating-rfq-protocols-for-multi-leg-digital-asset-derivatives-institutional-execution.jpg)

## Rfp Cost

Meaning ▴ RFP cost, in the domain of crypto technology and institutional investing, refers to the total expenditure incurred by an organization during the process of issuing and managing a Request for Proposal (RFP) for services like blockchain development, security audits, or a new institutional trading platform. </a>

**Tags:** [RFP Cost](https://options.greeks.live/area/rfp-cost/), [Process Intelligence](https://options.greeks.live/area/process-intelligence/), [Activity-Based Costing](https://options.greeks.live/area/activity-based-costing/), [Overhead Allocation](https://options.greeks.live/area/overhead-allocation/), [Solution Architecture](https://options.greeks.live/area/solution-architecture/), [Total Cost](https://options.greeks.live/area/total-cost/)	

## Discover More

- 
### [How Can an Organization Effectively Correlate RFP Efficiency Metrics with Broader Business Outcomes?](https://options.greeks.live/question/how-can-an-organization-effectively-correlate-rfp-efficiency-metrics-with-broader-business-outcomes/)
![Precision mechanics illustrating institutional RFQ protocol dynamics. Metallic and blue blades symbolize principal's bids and counterparty responses, pivoting on a central matching engine. This visualizes high-fidelity execution and price discovery for digital asset derivatives, emphasizing low latency and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-digital-asset-derivatives-rfq-execution-engine-microstructure.jpg)

An organization correlates RFP metrics to business outcomes by architecting a data system that links process efficiency to bid profitability and strategic fit.

- 
### [What Are the Most Critical Kpis to Track in an Rfp Process?](https://options.greeks.live/question/what-are-the-most-critical-kpis-to-track-in-an-rfp-process/)
![A multi-layered, circular device with a central concentric lens. It symbolizes an RFQ engine for precision price discovery and high-fidelity execution. This robust system enables institutional digital asset derivatives trading, reflecting advanced market microstructure, volatility surface analysis, Principal's operational framework, and efficient options trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-precision-execution.jpg)

An RFP's critical KPIs quantify the alignment of a potential partner's solution with your long-term strategic and financial architecture.

- 
### [What Are the Primary Categories of Financial Impact from a Poor Rfp Process?](https://options.greeks.live/question/what-are-the-primary-categories-of-financial-impact-from-a-poor-rfp-process/)
![Geometric planes, light and dark, interlock around a central hexagonal core. This abstract visualization depicts an institutional-grade RFQ protocol engine, optimizing market microstructure for price discovery and high-fidelity execution of digital asset derivatives including Bitcoin options and multi-leg spreads within a Prime RFQ framework, ensuring atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-architecture.jpg)

A poor RFP process is a systemic flaw in an organization's architecture, guaranteeing value leakage and strategic misalignment.

- 
### [What Is the Most Effective Way to Structure a Team for Executing a Complex Hybrid Rfp?](https://options.greeks.live/question/what-is-the-most-effective-way-to-structure-a-team-for-executing-a-complex-hybrid-rfp/)
![A translucent teal layer overlays a textured, lighter gray curved surface, intersected by a dark, sleek diagonal bar. This visually represents the market microstructure for institutional digital asset derivatives, where RFQ protocols facilitate high-fidelity execution. The transparency suggests price discovery across diverse liquidity pools, optimizing capital efficiency and minimizing slippage for block trades.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocols-driving-optimal-execution.jpg)

A hybrid RFP team is a purpose-built system integrating commercial, technical, and risk analysis to drive a unified, data-backed decision.

- 
### [How Do You Establish an Accurate Baseline Cost for an Existing RFP Process?](https://options.greeks.live/question/how-do-you-establish-an-accurate-baseline-cost-for-an-existing-rfp-process/)
![Abstract geometric structure with sharp angles and translucent planes, symbolizing institutional digital asset derivatives market microstructure. The central point signifies a core RFQ protocol engine, enabling precise price discovery and liquidity aggregation for multi-leg options strategies, crucial for high-fidelity execution and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/principals-operational-framework-optimizing-institutional-digital-asset-derivatives-rfq-protocol-execution-for-alpha-generation.jpg)

Establishing an RFP cost baseline is architecting a financial model to translate operational effort into strategic, data-driven procurement decisions.

- 
### [What Are the Most Common Mistakes to Avoid When Responding to an Rfp?](https://options.greeks.live/question/what-are-the-most-common-mistakes-to-avoid-when-responding-to-an-rfp/)
![Glossy, intersecting forms in beige, blue, and teal embody RFQ protocol efficiency, atomic settlement, and aggregated liquidity for institutional digital asset derivatives. The sleek design reflects high-fidelity execution, prime brokerage capabilities, and optimized order book dynamics for capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-principal-operational-frameworks.jpg)

An RFP response fails not from isolated errors, but from a flawed operational architecture unable to translate value into a persuasive proposal.

- 
### [What Are the Most Important Data Points for Predicting RFP Win Rates?](https://options.greeks.live/question/what-are-the-most-important-data-points-for-predicting-rfp-win-rates/)
![A central dark aperture, like a precision matching engine, anchors four intersecting algorithmic pathways. Light-toned planes represent transparent liquidity pools, contrasting with dark teal sections signifying dark pool or latent liquidity. Small circular elements suggest order book dynamics or atomic settlement points, embodying principal execution for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-9.jpg)

Predicting RFP win rates requires a data architecture that systematically weighs client relationships, competitive pressures, and internal alignment to forecast outcomes.

- 
### [How Can We Quantify the Hidden Costs of a Flawed RFP Process?](https://options.greeks.live/question/how-can-we-quantify-the-hidden-costs-of-a-flawed-rfp-process/)
![Precisely engineered circular beige, grey, and blue modules stack tilted on a dark base. A central aperture signifies the core RFQ protocol engine. This embodies a Prime RFQ facilitating high-fidelity execution for institutional digital asset derivatives, optimizing liquidity pool aggregation, multi-leg spread pricing, and robust price discovery in market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/core-prime-os-rfq-engine-digital-asset-derivatives-trading-system-execution.jpg)

A flawed RFP's hidden costs are quantified by modeling the total cost of ownership, including internal resources, risk, and opportunity costs.

- 
### [What Is the Impact of Inconsistent Evaluation Criteria on the Financial Outcome of an Rfp?](https://options.greeks.live/question/what-is-the-impact-of-inconsistent-evaluation-criteria-on-the-financial-outcome-of-an-rfp/)
![Abstract intersecting geometric forms, deep blue and light beige, represent advanced RFQ protocols for institutional digital asset derivatives. These forms signify multi-leg execution strategies, principal liquidity aggregation, and high-fidelity algorithmic pricing against a textured global market sphere, reflecting robust market microstructure and intelligence layer.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-multi-leg-execution-algorithmic-pricing-global-liquidity-principal-trading-systemic-integration-high-fidelity-execution.jpg)

Inconsistent RFP evaluation criteria introduce systemic risk, leading to value leakage and suboptimal financial outcomes.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "How Can Activity Based Costing Reveal the True Cost of an Rfp?",
            "item": "https://options.greeks.live/question/how-can-activity-based-costing-reveal-the-true-cost-of-an-rfp/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/how-can-activity-based-costing-reveal-the-true-cost-of-an-rfp/"
    },
    "headline": "How Can Activity Based Costing Reveal the True Cost of an Rfp? \u25b4 Question",
    "description": "Activity-Based Costing reveals an RFP's true cost by systematically mapping resource consumption to the specific activities required for its completion. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-can-activity-based-costing-reveal-the-true-cost-of-an-rfp/",
    "datePublished": "2025-08-07T06:20:39+00:00",
    "dateModified": "2025-10-27T15:44:10+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-institutional-digital-asset-derivatives.jpg",
        "caption": "This abstract visual represents an advanced institutional-grade platform for digital asset derivatives trading. The transparent design reveals the intricate market microstructure of its high-fidelity execution engine, optimized for RFQ protocol and block trade facilitation. It signifies a robust principal's operational framework, enabling smart order routing, portfolio margin optimization, and atomic settlement for superior capital efficiency and alpha generation within a crypto derivatives OS."
    },
    "keywords": [
        "Activity Dictionary",
        "Activity-Based Costing",
        "Cost Driver",
        "Cost Pool",
        "Customer Profitability",
        "Go/no-Go Decision",
        "Overhead Allocation",
        "Process Intelligence",
        "Proposal Management",
        "Resource Allocation",
        "RFP Cost",
        "RFP Process",
        "Solution Architecture",
        "Solution Design",
        "Strategic Cost Management",
        "Total Cost"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```


---

**Original URL:** https://options.greeks.live/question/how-can-activity-based-costing-reveal-the-true-cost-of-an-rfp/
