The Marionettes Company is noted for an exceptionally impressive line of Mardi Gras masks. Marionettes has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2012:
Required:
a. Determine the activity cost driver rate for each of the four selling and distribution activities.
b. Under what circumstances is it appropriate to use each of the activity cost drivers?
c. Describe at least one possible negative behavioral consequence for each of the four activity cost drivers.
Definitions:
Parallelism
Parallelism refers to the practice of ensuring elements in sentences are grammatically similar or identical in structure, sound, meaning, or meter to enhance coherence and balance.
Bank Debits
Transactions that reduce the account balance of a bank account, representing money that has been withdrawn or payments made.
Freight Loadings
The process or act of loading cargo for transport by various modes of transportation like trains, ships, or airplanes.
Parallelism
The use of components in sentences that are grammatically the same, or similar in their construction, sound, meaning, or meter.
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