4.12

$7.000/oth Cesh and Activity Based Costing tO 2, 3 e reduce coss to remoin competitive, Moninou uses Au AbC ond ee aurchosing is the number o pan, the number ol pots lroe the compny wos pevicol driver S-AAC Molev s Podot designers have decided to reduce the num asch produe to esice coots for exomple, a hool manufactured by the comp a conpused of 45 pars Aher redesign the tool contained 40 parts The co Monlew Company is rying to te Mmebeg Paper Company purchases lorge rolls of paper from poper mandachwe conpony then outs and packages the paper to meet the demond of smoll P412 Pricing and ActivitySosed Costing 1O 1, 2,9 The company uses ABC s deermine the cost of the product and then charges the oanies co no-on addional 20 percent for prof. The price calculation for a recent ordert, ike the following Cost s 150 200 120 40 40 C 540 Application Rote Usage of Cost Driver 30 cuts 1/pockage 200 packages C0 80/poskage 200 packoges 4/Akilometer Storing 10 kilometers 1 order Total acivity costs Row materiols 300 840 168 1,008 20840 The csto not happy with the price and threotens to change suppliers tot is shoild he Mneberg Company reexamine its activities, the relation with its customen, ard priing proces $7.000/oth Cesh and Activity Based Costing tO 2, 3 e reduce coss to remoin competitive, Moninou uses Au AbC ond ee aurchosing is the number o pan, the number ol pots lroe the compny wos pevicol driver S-AAC Molev s Podot designers have decided to reduce the num asch produe to esice coots for exomple, a hool manufactured by the comp a conpused of 45 pars Aher redesign the tool contained 40 parts The co Monlew Company is rying to te Mmebeg Paper Company purchases lorge rolls of paper from poper mandachwe conpony then outs and packages the paper to meet the demond of smoll P412 Pricing and ActivitySosed Costing 1O 1, 2,9 The company uses ABC s deermine the cost of the product and then charges the oanies co no-on addional 20 percent for prof. The price calculation for a recent ordert, ike the following Cost s 150 200 120 40 40 C 540 Application Rote Usage of Cost Driver 30 cuts 1/pockage 200 packages C0 80/poskage 200 packoges 4/Akilometer Storing 10 kilometers 1 order Total acivity costs Row materiols 300 840 168 1,008 20840 The csto not happy with the price and threotens to change suppliers tot is shoild he Mneberg Company reexamine its activities, the relation with its customen, ard priing proces