Using activity based pricing marks up the direct cost


A company using activity based pricing marks up the direct cost of goods by 30% plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows:

  • $8.00 per order placed
  • $4.00 per separate item ordered
  • $30.00 per return.

A customer places 10 orders with a total direct cost of $3,000, orders 300 separate items, and makes 5 returns. What will the customer be charged?

 

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Accounting Basics: Using activity based pricing marks up the direct cost
Reference No:- TGS0680517

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