What the total cost savings will be


Use the following to answer questions 38-39:

Binden firm as recently performed a value-added analysis and ranking of activities. Presented below is an analysis of one sub-activity cost, sorted by value and cost:

Comparisons of Activity Values and Costs
Customer Value Sum of sub-activity costs
%
5 $ 184 9.15%
4 14 0.70%
3 759 37.74%
2 395 19.64%
1 $ 659 32.77%
Total $ 2,011 100.00%

If Binden Firm eliminates the two activities with the least value-added, what the total cost savings will be ?

 

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Accounting Basics: What the total cost savings will be
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