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:

Size Constancy

A perceptual phenomenon where the perceived size of an object remains constant despite changes in its distance from the observer.

Bottom-Up Processing

An approach to information processing that starts with small, detailed data points to build up a comprehensive picture.

Retinal Image

A proximal stimulus for vision consisting of the projection of light waves reflected from stimuli and projected to a surface at the back of the eye.

Featural Analysis Theory

A theory in cognitive psychology that suggests objects are broken down into their component features for recognition and processing.