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Nancy Lake owns a small department store in a metropolitan area. For twenty years, the accountant has applied overhead to the various departments - Women's
Nancy Lake owns a small department store in a metropolitan area. For twenty years, the accountant has applied overhead to the various departments - Women's Apparel, Men's Apparel, Cosmetics, Housewares, Shoes, and Electronics - based on the basis of employee hours worked. Nancy Lake's daughter, who is an accounting student at a local university, has suggested her mother should consider using activity-based costing (ABC). In an attempt to implement ABC, Nancy Lake and her daughter have identified the following activities. Determine a cost driver for each of the activities listed below. Cost pool Cost Driver a. Placing orders b. Stocking merchandise C. Waiting on customers d. Janitorial and maintenance e. Training employees f. Administrative g. Advertising and Marketing h. Accounting and Legal Services i. Wrapping packages Save for Later of 1 used Submit Answer Number of Employees; Dollar Volume of Business Dollar Volume of Sales Number of Orders; Volume of Individual Orders Number of Packages Number of Ad Campaigns Square Feet Occupied; Traffic Through Area Number of Orders; Dollar Volume of Orders Number of Customers; Dollar Volume of Sales Total Number of Employees; Number of New Employees
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