Concept explainers
Concept introduction:
Under activity based costing,
Requirement 1:
To determine:
We have to determine the cost per cost driver for each of the three cost centers.
Requirement 2:
To determine:
We have to determine the total cost and average cost per customer.
Requirement 3:
To determine:
We have to determine whether the cost of general landscaping will be higher or lower if all center cost were allocated on the basis of number of customer.
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