Question :
112.Which one of the following not assigned to individual customers : 1302814
112.Which one of the following is not assigned to individual customers when employing a customer profitability analysis?
A.Sales revenue
B.Cost of goods sold
C.Cost of filling the customer’s orders
D.Cost of designing a new product
113.Which one of the following might result from performing a customer profitability analysis?
A.Dropping some customers that are unprofitable
B.Increasing prices or offering incentives to profitable customers
C.Eliminating products that cause customers to complain
D.Offering customers that use more services than others a special customer service unit that provides more one-on-one time
114.First Décor has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results for the year appear below:
Cost PoolCostCost DriverQuantity
Processing electronic orders$400,000Number of orders40,000
Processing non-electronic orders120,000Number of orders8,000
Picking orders240,000Number of different products ordered120,000
Packaging orders180,000Number of items ordered150,000
Returns15,000Number of returns3,000
What is the cost allocation for two Internet orders for 22 items with 7 different products and one return?
A.$65.40
B.$33.20
C.$60.40
D.$40.40
115.First Décor has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results for the year appear below:
Cost PoolCostCost DriverQuantity
Processing electronic orders$400,000Number of orders40,000
Processing non-electronic orders120,000Number of orders8,000
Picking orders240,000Number of different products ordered120,000
Packaging orders180,000Number of items ordered150,000
Returns15,000Number of returns3,000
If all costs were assigned to customers based on the number of items ordered, what would be the cost per item ordered?
A.$6.37
B.$33.20
C.$1.20
D.$0.16
116.First Décor has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results for the year appear below:
Cost PoolCostCost DriverQuantity
Processing electronic orders$400,000Number of orders40,000
Processing non-electronic orders120,000Number of orders8,000
Picking orders240,000Number of different products ordered120,000
Packaging orders180,000Number of items ordered150,000
Returns15,000Number of returns3,000
One customer of First Décor placed 30 electronic orders with a total selling price of $25,400. The direct cost of these orders is $17,200. The orders consist of five different products with a total of 2,200 items, and two returns. Using an activity-based costing method, how much are the indirect costs associated with serving this customer?
A.$2,960
B.$996
C.$2,660
D.$3,110
117.Activity-based pricing
A.encourages customers to use as many services as possible that are provided by the seller.
B.charges customers for each service they use.
C.allows all customers to pay lower total prices.
D.reduces the direct costs of offering products for sale.
118.For which of the following items might a customer be charged extra for an order under activity-based pricing?
A.Placing the order during non-peak times
B.Requesting an order be delivered in three separate shipments
C.Using an automated order system
D.Tracking delivery via an online support utility
119.Which one of the following is a goal of activity-based pricing?
A.To charge customers for the costs that they are creating
B.To increase profits by charging all customers at higher prices
C.To maintain all customers in the customer base
D.To broaden market share
120.A company estimates that ordering costs are $2.00 per order, picking costs are $1.00 for each different item ordered, packing costs are $0.07 per item, and return costs are $40.00 per return. A customer orders $8,000 worth of goods with direct costs of $6,200. The customer places 70 orders, orders 24 unique items, 940 total items, and makes 7 returns. What is the customer profit?
A.$509.80
B.$1,290.20
C.$7,490.20
D.$1,800
121.A company estimates that ordering costs are $3.20 per order, picking costs are $2.15 per unique item ordered, packing costs are $0.04 per item, and return costs are $15.00 per return. A customer orders $8,440 worth of goods with direct costs of $5,200. The customer places 85 orders, orders 72 unique items, 450 total items, and makes 5 returns. What is the customer profit?
A.$519.60
B.$3,240
C.$2,720.20
D.$7,920.20
