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A Company Estimates That Ordering Costs Are $4

question 123

Multiple Choice

A company estimates that ordering costs are $4.00 per order, picking costs are $3.00 per unique item ordered, packing costs are $0.04 per item, and return costs are $70.00 per return.A customer makes 50 orders, orders 80 unique items, and 900 total items.The customer makes 11 returns.The pricing structure is to charge customers for the cost of the services that are provided.Using activity-based pricing for each of the above items, what will be the total amount of additional cost paid by the customer?

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Definitions:

Data

Information collected for analysis or used to make decisions, which can be quantitative or qualitative in nature.

HRM Practice

The strategies, policies, and practices implemented by an organization to effectively manage its human resources and maximize their performance.

Performance Management System

A framework for managing and evaluating employee performance towards achieving business objectives.

Customer Satisfaction

Measures how well a company’s products or services meet or surpass customer expectations.