Martin's Is a Store with Three Departments,Appliances,Tools,and Home Improvements

question 62

Essay

Martin's is a store with three departments,Appliances,Tools,and Home Improvements.The company expects to incur the following indirect costs related to its operations:
Store manager's salary
Store supplies
Electric bill
Clerical staff salaries
Payroll taxes
Office supplies
Water bill
Sewer bill
Medical insurance
Vacation pay
Required:
1)Organize the indirect costs into three cost pools: Store Administration,Utilities,and Fringe Benefit Costs,assuming that each department is a cost object
2)Identify an appropriate cost driver for each cost pool.

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Definitions:

Individual Distinction

The aspects that make a person unique or set them apart from others, often related to personal achievements or characteristics.

External Attributions

The process of ascribing the cause of one’s own or others’ behavior to external factors or circumstances.

Self-serving Bias

A cognitive bias where individuals attribute their successes to internal factors and failures to external factors.

In-group/out-group Bias

Describes the tendency to favor members of one's own group (the in-group) over those from different groups (the out-group), often leading to prejudice and discrimination.