he operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She as been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at he bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and hen replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far o show how those costs are related to the various services provided by the bank. The operations vice president has asked your help conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, he cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last year: $ 158,000 64,000 86,000 $ 308,000 Teller wages Assistant branch manager salary Branch manager salary Total Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization-sustaining costs that cannot be heaningfully assigned to individual customer transactions such as depositing checks. addition to the cost data above, the employees of the Westfield branch have been interviewed concerning how their time was
he operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She as been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at he bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and hen replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far o show how those costs are related to the various services provided by the bank. The operations vice president has asked your help conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, he cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last year: $ 158,000 64,000 86,000 $ 308,000 Teller wages Assistant branch manager salary Branch manager salary Total Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization-sustaining costs that cannot be heaningfully assigned to individual customer transactions such as depositing checks. addition to the cost data above, the employees of the Westfield branch have been interviewed concerning how their time was
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 5EB: Assume you are the warehouse manager for Vinnies Vinyls, a multi-location business specializing in...
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