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ABC to estimate the application rates for cost drivers

Identify a product or service in Wal-Mart that could use ABC. You can also use this technique for selling and administrative costs. Then identify at least two activities for ABC and the appropriate cost drivers for those activities. Estimate the application rates for each cost driver.

If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.

Your report should include

The name and nature of the organization
The activity and time period you used
The inputs you used
Your results
Any implications from your results

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Solution Preview

Identify a product or service in Wal-Mart that could use ABC. You can also use this technique for selling and administrative costs. Then identify at least two activities for ABC and the appropriate cost drivers for those activities. Estimate the application rates for each cost driver. If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.

Your report should include

The name and nature of the organization
The activity and time period you used
The inputs you used
Your results
Any implications from ...

Solution Summary

Response provides the steps to use ABC to estimate the application rates for cost drivers

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