Banks have a variety of products, such as savings accounts, checking accounts, certificates of deposit (CDs), and loans. Assume that you were assigned the task of determining the administrative costs of “checking and savings accounts” as a complete product line. What are some of the activities associated with checking and savings accounts? In answering this question, consider the activities that you might perform with your checking and savings accounts.
For each activity, what would be an activity base that could be used to allocate the activity cost to the checking and savings accounts product line?