Customer profitability, customer-cost hierarchy. Enviro-Tech has only two retail and two whole- sale customers. Information relating to each customer for 2017 follows (in thousands): Wholesale Customers Retail Customers North America South America Wholesaler Wholesaler Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs Order processing costs $375,000 25,800 285,000 4,550 3,820 6,300 $590,000 47,200 510,000 6,710 Green Energy Global Power $175,000 8,400 144,000 2,230 2,180 2,620 $130,000 590 95,000 2,145 1,130 1,575 5,980 2,620 Cost of sales visit Enviro-Tech's annual distribution-channel costs are $33 million for wholesale customers and $12 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs are $48 million. There is no cause-and-effect or benefits-received rela- tionship between any cost-allocation base and corporate-sustaining costs. That is, Enviro-Tech could save corporate-sustaining costs only if the company completely shuts down.

Customer profitability, customer-cost hierarchy. Enviro-Tech has only two retail and two whole- sale customers. Information relating to each customer for 2017 follows (in thousands): Wholesale Customers Retail Customers North America South America Wholesaler Wholesaler Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs Order processing costs $375,000 25,800 285,000 4,550 3,820 6,300 $590,000 47,200 510,000 6,710 Green Energy Global Power $175,000 8,400 144,000 2,230 2,180 2,620 $130,000 590 95,000 2,145 1,130 1,575 5,980 2,620 Cost of sales visit Enviro-Tech's annual distribution-channel costs are $33 million for wholesale customers and $12 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs are $48 million. There is no cause-and-effect or benefits-received rela- tionship between any cost-allocation base and corporate-sustaining costs. That is, Enviro-Tech could save corporate-sustaining costs only if the company completely shuts down.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Distinguish between the qualities and aims of cost accounting, as well as between the nature and significance of a task cost sheet.
Explain in details what the textbook means by a “cost hierarchy”
Describe how product cost informationis used by managers to identify cost improvement opportunities?
Identify and Classify the following activities as per their respective categories under Value Chain Analysis: 1.Communication, pricing and channel management 2.Installation, repairs and replacement 3.Planning and management 4.Inputs in to final product
Cost accounting provides management with a variety of cost classifications that can be used for different decision-making processes. Write your opinion on how management could use each of the following cost classification for decision making: Direct and indirect costs. Fixed, variable, and mixed costs. Period and product costs. Manufacturing and selling costs. Standards and actual costs.
Briefly discuss the features of Activity-Based costing system.
Define and explain the two major subsystems of the cost management information system.