costacctg13_sm_ch05

The abc system more accurately allo cates

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Unformatted text preview: incremental costs to (4). Similarly, (1) order processing and (2) line item ordering may have commo n costs. d. Behavioral factors are likely to be a challenge to Flair. He must now tell those salespeople who specialize in Mo m­and­Pop accounts that they have been less profitable than previously thought. 5-37 5­35 (30­40 min.) Choosing cost drivers, activity­based costing, activity­based management. 1. Direct materials—purses Direct materials—backpacks Direct manufacturing labor—purses Direct manufacturing labor—backpacks Setup Shipping Design Plant utilit ies and administration 2. Direct materials—purses Direct materials—backpacks Direct manufacturing labor—purses Direct manufacturing labor—backpacks Setup Shipping Design Plant utilit ies and administration Output unit­level costs Output unit­level costs Output unit­level costs Output unit­level costs Batch­level costs Batch­level costs Product­sustaining costs Facilit y­sustaining costs Number of bags Number of bags Number of bags Number of bags Number of batches Numbe...
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