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a . What is the total indirect cost assigned to the distribution center? b . Currently, all of the costs are added and assigned to
aWhat is the total indirect cost assigned to the distribution center?
bCurrently, all of the costs are added and assigned to the products based on the total number of orders placed for the month. Which benefits can be gained by assigning costs using the ABC analysis? Be specific.
cDo you agree with the activity cost drivers chosen? Should the company use timebased drivers for any of the activities? What if the items vary in weight or their need for special handling?
dThe company is concerned with the costs associated with tracking the usage versus the benefits from the information gathered. As such, for the postsales service activity, all customers with issues were lumped together. Do you think that changes, returns, and collections warrant further breakdown? Discuss.
eManagement is interested in ranking the previously mentioned activities with respect to "value added." What would be your ranking of the activities from most valueadded to least valueadded?
fManagement has concluded that postsales service is the primary activity candidate for improvement. How could the company reduce the postsales service costs? What additional customer information would be useful?
gWould it be useful to present this information in a visual formateg bar graph, pie chart Explain.
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