Queen's Move plc specializes in household removals and storage services. The business runs its own fleet of removal vehicles and also has freehold premises used for storage in many major towns and cities. The directors are undertaking an exercise to identify the principal cost pools and drivers in both aspects of the business with a view to implementing ABC on a two-year trial basis Which option below is the correct one for an activity pool? O booking of a removal by a customer O Premises costs (for housing the fleet of vehicles) O occupation of space by goods stored O number of miles driven

Queen's Move plc specializes in household removals and storage services. The business runs its own fleet of removal vehicles and also has freehold premises used for storage in many major towns and cities. The directors are undertaking an exercise to identify the principal cost pools and drivers in both aspects of the business with a view to implementing ABC on a two-year trial basis Which option below is the correct one for an activity pool? O booking of a removal by a customer O Premises costs (for housing the fleet of vehicles) O occupation of space by goods stored O number of miles driven

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are required to prepare a proposal on the potential benefits and costs of implementing an Activity-based costing (ABC) system to determine customer profitability for a local bank, Kangaroo Commercial Bank Limited. The bank currently uses a traditional costing system. The clients of Kangaroo Commercial Bank are regional residents in North Australia. Thebanks considers extending its operation across some metropolitans, such Sydney and Melbourne, to serve the retail banking and investment demands of its clients. Required: a. ABC system requires a setting of operational activities and activity drivers. In identifying activity driver which mainly causes costs to be incurred at an activity level, what important factors should be considered? Explain to management why you consider these important.
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Please answer E
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Write a memo to Mountain Outfitters management describing how the improved system might be useful for managing the store.
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