=+3 TSs small workforce gathers as a team and considers process improvements. They recommend firing the marginal

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=+3 TS’s small workforce gathers as a team and considers process improvements. They recommend ‘firing’ the marginal vendors—

those who need a lot of ‘hand holding’ but whose titles are not very popular. They agree that they should shift some of their resources from vendor relationships and cataloguing to delivery and customer relationships. In May 2013, TS reports the following support costs:

Activity Cost driver Quantity Cost per unit of cost driver Ordering Number of game vendors 30 $200 per vendor Cataloguing Number of new titles 15 $100 per title Delivery and support Number of deliveries 450 $20 per delivery Billing and collection Number of customers 300 $50 per customer

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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