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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 4
Simplifying the ABC System: TDABC
Golding Bank provided the following data about its resources and activities for its checking account process:
Required:
1. Calculate the capacity cost rate for the checking account process.
2. Calculate the activity rates for the four activities. If the total number of statements issued was 20,000, calculate the cost of the issuing statements activity.
3. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $10,000 reduction in total resource costs? Update all the activity rates for these changes in operating conditions.
Golding Bank provided the following data about its resources and activities for its checking account process:
Required:
1. Calculate the capacity cost rate for the checking account process.
2. Calculate the activity rates for the four activities. If the total number of statements issued was 20,000, calculate the cost of the issuing statements activity.
3. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $10,000 reduction in total resource costs? Update all the activity rates for these changes in operating conditions.
Explanation
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We are given the data about G Bank's res...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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