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BookWeb, Inc., sells books and software over the Internet. A recent article in a trade journal has caught the attention of management because the company has experienced soaring inventory handling costs. The article notes that similar firms have purchasing, warehousing, and distribution costs that average 13 percent of sales. Thirteen percent is attractive to BookWeb management when compared to its results for the past year, shown in the following table.

Activity (cost)	Cost Driver	Cost Driver Quantity				% of Cost Driver for Books				% of Cost Driver for Software
Incoming receipts ($300,000)	Number of purchase orders		2,000				70	%			30	%
Warehousing ($360,000)	Number of inventory moves		9,000				80				20
Shipments ($225,000)	Number of shipments		15,000				25				75

Book sales revenue totaled $3,900,000 and software sales revenue totaled $2,600,000. A review of the companys activities found various inefficiencies with respect to the warehousing of books and the outgoing shipments of software. In particular, book misplacements resulted in an extra 550 moves and software had 250 incorrect shipments.

c. Cite situations that may have given rise to non-value-added activities at BookWeb. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Purchase order incorrectly recorded regarding shipment address.

Warehouse personnel pack the wrong books and/or software for customers.

Books or software were moved to the correct part of the warehouse.

Purchase order correctly relayed to the warehouse and the correct books and/or software are shipped.

Book sales revenue increased because of good marketing strategy.