Results (
English) 2:
[Copy]Copied!
Worley Company buys surgical supplies from a variety of manufacturers and resells and delivers Then These supplies to Hundreds of hospital. Worley sets prices for all hospital STI by making up STI cost of good sold to Those hospital by 5%. For example, if a hospital buys supplies from Worley That HAD cost Worley $ 100 to buy from manufacturers, Worley would charge the hospital $ 105 to purchase These supplies.
For years, Worley Believed That the 5% markup covered ITS selling and administrative expanses and provided to reasonable profit. However, in the face of declining profits Worley DECIDED to Implement an activity-base costing ITS system to help improve increase understanding of customer profitability. The company broke ITS selling and administrative expenses into five activities as shown below:
Being translated, please wait..
