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Traditional cost view: salaries $120,000, Suppliers $30,000, other 80,000. Total: $230,000 Activity cost view: Take orders $110,000, fill and deliver orders $80,000, collect $40,000 Company

Traditional cost view: salaries $120,000, Suppliers $30,000, other 80,000. Total: $230,000

Activity cost view: Take orders $110,000, fill and deliver orders $80,000, collect $40,000

Company X is 15% of sales, 10% of orders, 15% of deliveries, 10% of collection costs.

How much does company X cost to serve?

Traditional View: ABC View:

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