Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help me with this ABC accounting question? also please explain every step clearly with a handwritten answer GMIPService, a service company, provides two

Can someone help me with this ABC accounting question? also please explain every step clearly with a handwritten answer

image text in transcribed

GMIPService, a service company, provides two different types of services. Service A, which requires minimal sales effort and Service B, which is still not very well known in the market As expected, Service B consumes a lot of time from the sales representatives Instead of allocating an equal amount of sales expenses to each one of the products, the company can use estimation techniques to map out accurately this cost to the individual services. Sales expenses include the representatives' salaries, phone and Internet time, and some travel to selected potential customers. There is also a great amount of time spent preparing the presentations and materials to show to individual clients, since there is always an attempt to customize them to the client's potential use of the service. The expenses are shown in the following list Sales representatives salaries 140,000 Phone and Internet 4,000 20,000 Travel expenses 10,000 Presentations materials and equipment The following activity information is also available: Service A Service B Number of sales appointments 40 75 Number of follow-up calls 125 20 Estimated of effort 25% 75% Number of presentations 10 30 TL300,000 TL Volume of sales 00.000 100 Number of finalized sales 500 The company wants to know whether it is pricing Service B correctly? a) Use ABC to arrive a recommendation regarding ABC b) What is the cost of delivering each of the services

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Clinical Audit For Doctors

Authors: Dr. Bob Ghosh, Sir Liam Donalson, Dr. Chen Sheng Low, Margaret Keane, Dr. Bhoresh Dhamija

1st Edition

1906839018, 978-1906839017

More Books

Students also viewed these Accounting questions