Question: Exercise 1 9 . 9 ( Static ) Activity - Based Management at First Bank ( LO 1 9 - 3 ) Skip to question

Exercise 19.9(Static) Activity-Based Management at First Bank (LO19-3)
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TPS Incorporated is using activity-based cost information to determine whether it can save money by reassigning activities in its retail stores. The following information has been gathered for a typical store:
Annual Salary % Time Helping Customers Shop % Time on Checking Out Customers % Time Idle
Clerks6 $ 25,00080510
Cashiers5 $ 32,000206015
In its activity analysis, TPS found that clerks have about 10 percent idle time while customers are entering and leaving the store. The analysis also showed that clerks would be able to help customers organize their purchases before checking out with a cashier. Furthermore, the analysis suggested that about 5 percent of cashiers time is spent helping customers organize their purchases before checkout begins.
Exercise 19.9(Static) Part b
b. What other considerations should TPS investigate before assigning the organizing task to the clerks?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.

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