Question: Brett Graham has been working on Hiltech s activity based cost implementation

Brett Graham has been working on Hiltech's activity-based cost implementation team. One of his assignments is to study the information services department. One activity cost pool in the department is providing support for computer users by providing a help desk that users can call and ask questions. Brett has identified two possible cost drivers for this activity cost pool: number of calls and length of call in minutes.

a. Identify some of the costs that will be included in this activity cost pool.
b. Which of the proposed cost drivers would be best for this activity cost pool? Why?

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  • CreatedFebruary 21, 2014
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