Question
We Trust Me Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates: Activity
We Trust Me Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
| Activity | Cost Driver | Rate |
| Sales | # of visits | $450 |
| Order processing | # of orders | $125 |
| Product handling | # of units | $12 |
| Special shipping | # of shipments | $500 |
The company has the following information regarding Trudeauz Ltd. and Scheery Inc.:
| Activity | Trudeauz Ltd. | Scheery Inc. |
| # of visits | 9 | 6 |
| # of orders | 18 | 24 |
| Product handling | 650 | 380 |
| Special shipping | 15 | 30 |
Sales for Trudeauz and Scheeryare $280,000 and $148,000 respectively. The cost of goods sold on these sales are the same at 52%.
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Machine Learning For Auditors Automating Fraud Investigations Through Artificial Intelligence
Authors: Maris Sekar
1st Edition
1484280504, 978-1484280508
