costacctg13_sm_ch05

Otheranswersareacceptableprovidedthatclearexplanat

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Unformatted text preview: king availabilit y, accessibilit y o f the storage/shelf space to the delivery point, etc. Similarly, not all cartons are equally easy to deliver––their weight, size, or likely breakage component are factors that can vary across carton types. b. Developing a reliable data base on the chosen cost drivers. For some items, such as the number o f orders and the number of line items, this informat ion likely would be available in machine readable form at a high level o f accuracy. Unless the deliver y personnel have hand­held co mputers that they use in a systemat ic way, est imates of shelf­stocking t ime are likely to be unreliable. Advances in informat ion techno logy likely will reduce problems in this area over time. 5-36 c. Deciding how to handle costs that may be common across several activities. For example, (3) store delivery and (4) cartons shipped to stores have the co mmo n cost of the same trip. So me organizat ions may treat (3) as the primary act ivit y and attribute only...
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This note was uploaded on 10/11/2010 for the course ACCT 321 taught by Professor Cole during the Spring '10 term at University of Miami.

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