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Author Question: The Chapeau Company is noted for an exceptionally impressive line of one-size fits-all men's hats. ... (Read 54 times)

azncindy619

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The Chapeau Company is noted for an exceptionally impressive line of one-size fits-all men's hats. Chapeau has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2018:

ActivityCostCost driver
Marketing$160,000$1,450,000 of sales
Customer service70,00010,000 customer
Order execution5,000200 orders
Warehousing15,000125 product lines

Required:
a.  Determine the activity-cost-driver rate for each of the four selling and distribution activities. 
b.  Under what circumstances is it appropriate to use each of the activity-cost drivers? 
c.  Describe at least one possible negative behavioral consequence for each of the four activity-cost drivers.


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Marked as best answer by azncindy619 on Mar 6, 2021

aprice35067

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azncindy619

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


scikid

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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