The Marionettes Company Is Noted for an Exceptionally Impressive Line

question 197

Essay

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 2018:
$\begin{array}{lrr}\text { Activity } & \text { Cost } & \text { Cost Driver } \\\text { Marketing } & \$ 30000 & \$ 500 \text { 000 of sales } \\\text { Customer service } & 10000 & 5000 \text { customer } \\\text { Order execution } & 5000 & 100 \text { orders } \\\text { Warehousing } & 5000 & 50 \text { product lines }\end{array}$
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 behavioural consequence for each of the four activity-cost drivers.
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Definitions:

Optic Chiasma

The Optic Chiasma is the X-shaped structure formed at the point where the optic nerves cross over each other, located at the base of the brain.

Optic Nerves

The pair of cranial nerves transmitting visual information from the retina to the brain.

Posteriorly

Relating to or located toward the back or rear of an organism or structure.

Cranial Nerves

Twelve pairs of nerves that arise directly from the brain, not from the spinal cord, and pass through various foramina in the skull to innervate structures in the head, neck, and some other areas.