EBK INTRODUCTION TO MANAGERIAL ACCOUNTI
EBK INTRODUCTION TO MANAGERIAL ACCOUNTI
8th Edition
ISBN: 9781260190229
Author: BREWER
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

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EBK INTRODUCTION TO MANAGERIAL ACCOUNTI

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What is Cost Allocation? Definition & Process; Author: FloQast;https://www.youtube.com/watch?v=hLhvvHvZ3JM;License: Standard Youtube License