=+Each customer order consists of one or more line items. A line item represents a single product

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=+Each customer order consists of one or more line items. A line item represents a single product (e.g. Nurofen Plus tablets). Each product line item is delivered in one or more separate cartons. Each store delivery entails the delivery of one or more cartons of products to a customer. Cinto’s staff stacks cartons directly onto display shelves in customers’ stores. Currently, there is no additional charge to the customer for shelf-stocking, and not all customers use Cinto for this activity. The level of each activity in the three market segments and the total cost incurred for each activity in 2014 is shown below:

13 14 15 16 17 18 19 20 21 22 23 A B C D E Activity-based cost data Cinto 2014 lareneG cost latoT supermarket Pharmacy of activity Activity chains chains single stores in 2014

$80 000 63 840 71 000 76 000 10 240 1 500 15 000 1 000 16 000 100

)rebmun( dessecorp sredrO

)rebmun( deredro smeti-eniL Store deliveries made (number)

Cartons shipped to stores (number)

)sruoh( gnikcots f-lehS Activity level 360 4 320 360 24 000 180 140 1 960 120 36 000 360

$301 080 Pharmacistowned Required 1 Calculate the 2014 gross-margin percentage for each of Cinto’s three market segments.

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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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