Bison Creek Company is preparing its annual profit plan.As part of its analysis of the cost of its purchasing activity,management estimates that the $250,000 for purchasing support should be assigned to the individual vendors from the information given as follows:
Required:
a.Prepare a schedule to allocate the purchasing costs to the three vendors,assuming Bison Creek uses units purchased to compute activity-based costs.b.Prepare a schedule to allocate the purchasing costs to the three vendors,assuming Bison Creek uses purchases orders to compute activity-based costs.c.Prepare a schedule to allocate the purchasing costs to the three vendors,assuming Bison Creek uses number of shipments to compute activity-based costs.
Correct Answer:
Verified
b.A...
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