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Activity - Based Customer - Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non - JIT distributors. The JIT
ActivityBased CustomerDriven Costs
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and nonJIT distributors. The JIT distributor pla
Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $ Round calculations to the nearest dollar.
tableSales in unitsJIT,NonJITces small, frequent orders, and the nonJIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customerrelated activities and costs for the most recent quarter:
tabletableJITDistributorstableNonJIIDistributorsSales orders,Sales calls,Service calls,Average order size,Manufacturing costunit$$ActivityBased CustomerDriven Costs activities and costs for the most recent quarter:
tableJITSistributorsSales orders calls,Service calls,Average order size,Manufacturing costunit$
ActivityBased CustomerDriven Costs activities and costs for the most recent quarter:
tabletableJITDistributorstableNonJITDistributorsSales orders,Sales calls,Service calls,Average order size,Manufacturing costunit$$
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