Brester Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study:
Required:
a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the total Order Fulfillment Department cost assigned to each customer.
b. Prepare a time-driven activity-based costing Capacity Analysis report for the Order Fulfillment Department that determines the impact on expenses of matching capacity with demand.
Definitions:
Process Re-Engineering
A complete overhaul and innovative redesigning of business procedures aimed at achieving significant enhancements in key performance indicators.
Customer Needs
Refers to the wants or desires that a customer expects a product or service to fulfill.
Process Value Analysis
Identifies and evaluates core processes for their performance contributions to customer satisfaction.
Value Chain Analysis
A strategic analysis tool that maps out the sequence of activities an organization performs to create value for its customers.
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