Nourse Enterprises Makes a Variety of Products That It Sells

question 180

Multiple Choice

Nourse Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: The cost of serving customers, $2,026.00 per customer, is the cost of serving a customer for one year. Koerner Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below:
According to the ABC system, the customer margin for this customer this past year was closest to:

• A) $14,670.00
• B) $10,578.55
• C) $16,020.00
• D) $19,083.55

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Definitions:

Informational Reports

Documents or presentations that provide facts or data without analysis, intended to inform the reader or audience.

Periodic Activities

Actions or tasks that are performed at regular intervals, such as monthly meetings or annual audits.

Situational Events

Circumstances or occurrences that happen at a particular time and place, often influencing the outcome of scenarios.

Business Report

A document that presents analysis and information regarding business performance and objectives.