Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN: 9780134492513
Author: Kotler, Philip, Armstrong, Gary (gary M.)
Publisher: Pearson Higher Education,
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155) 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 2010:

Activity Cost Cost Driver

Marketing $30 000 $500 000 of sales

Customer service 10 000 5000 customer

Order execution 5000 100 orders

Warehousing 5000 50 product lines

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.

 

 

 

156) For each of the following activities identify an appropriate activity-cost driver.

a. machine maintenance

b. machine setup

c. quality control

d. material ordering

e. production scheduling

f. warehouse expense

g. engineering design

 

 

 

 

 

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