Activity Based Costing Assignment

Activity Based Costing Assignment

Activity Based Costing Assignment

a) Define activities

Mitali Sheth: Active Wear Sales Specialist

Cost Pool and Activity description Cost Pool Description

1).Analyze customer needs wants and deliver excellent services It refers to wide range of activities that focus on customer needs, what are they specifically looking for and giving the best suggestion for the outfit they are thinking to wear for any occasion. Develop a high level of product knowledge for the merchandise in the particular department.

Cost Pool drivers: per month



2).Measure the rate of their satisfaction with telephonic and oral communication, surveys It refers to the amount of time spent for measuring the rate of satisfaction in areas such as active wear clothing, ... Show more content on Helpwriting.net ...It refers to the specific sale goals and star rewards goal for a particular month that would add value to the overall profit of the store and are to be achieved as being the sales specialist of that specific department.

Cost Pool drivers: per month



7).Responsible for maintaining inventory and display mannequins on the floor It refers to the display attractiveness and maintaining inventories on the shelves and appropriate arrangement of clothing on the floor. Also, making sure that fitting rooms are not flooded with clothes and put them back on the floor as soon as possible. Be aware of back inventories as well.

Cost Pool drivers: per month



8).Determine the weakness and strengths of the products being offered, based on that data suggest the management to bring additional merchandise and brands that would compliment customer selection and differentiate the company It refers to the demonstrating the management about the strengths and weakness of the products we have in the store, making suggestions if needed any and explain the results in the meeting conducted by monthly. Communicate with regional and district offices for support on driving more sales.

Cost Pool drivers: per month



b) Calculating hourly rate

Hourly rate: $ 9.50

Activity % of time Hours Hours*rate #ofactivities Costper unit

1 45.00% 800 $ 7,600.00 30 $ 253.33

2 10.00% 180 $ 1,710.00 12 $ 142.50

3 10.00% 180 $ 1,710.00 12 $ 142.50

4 10.00% 180 $ 1,710.00 12

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