Graham’s Wholesale Supply is a distributor of electrical supplies. The company has recently hired a controller who used activity-based costing at her last job. At her suggestion, Grahams is in the beginning stages of implementing activity-based costing for its operations. The following activity pools have been identified:
1. Filling sales orders
2. Maintenance of warehouse equipment
3. Warehousing of electrical supplies
4. Electricity to heat and cool warehouse
5. Delivery of goods to customer job sites

Required:
Identify at least one possible cost driver for each activity cost pool.

Question

Graham’s Wholesale Supply is a distributor of electrical supplies. The company has recently hired a controller who used activity-based costing at her last job. At her suggestion, Grahams is in the beginning stages of implementing activity-based costing for its operations. The following activity pools have been identified:
1.	Filling sales orders
2.	Maintenance of warehouse equipment
3.	Warehousing of electrical supplies
4.	Electricity to heat and cool warehouse
5.	Delivery of goods to customer job sites

Required:
Identify at least one possible cost driver for each activity cost pool.

Quizplus · Accepted Answer

The Answer of Graham’s Wholesale Supply is a distributor of electrical supplies. The company has recently hired a controller who used activity-based costing at her last job. At her suggestion, Grahams is in the beginning stages of implementing activity-based costing for its operations. The following activity pools have been identified:
1.	Filling sales orders
2.	Maintenance of warehouse equipment
3.	Warehousing of electrical supplies
4.	Electricity to heat and cool warehouse
5.	Delivery of goods to customer job sites

Required:
Identify at least one possible cost driver for each activity cost pool.

Graham’s Wholesale Supply Is a Distributor of Electrical Supplies