Readers Room Bookstore has a chain of stores that sell used and new books. The company has recently hired a controller who used activity-based costing at her last job. At her suggestion, the store is in the beginning stages of implementing activity-based costing for its operations. The following activity pools have been identified:
1. Inspection of used books before shelving
2. Costs of human resources department
3. Costs of computer department
4. Salaries of sales clerks
5. Costs of cleaning service

Required:
Identify at least one possible cost driver for each activity cost pool.

Question

Readers Room Bookstore has a chain of stores that sell used and new books. The company has recently hired a controller who used activity-based costing at her last job. At her suggestion, the store is in the beginning stages of implementing activity-based costing for its operations. The following activity pools have been identified:
1.	Inspection of used books before shelving
2.	Costs of human resources department
3.	Costs of computer department
4.	Salaries of sales clerks
5.	Costs of cleaning service

Required:
Identify at least one possible cost driver for each activity cost pool.

Quizplus · Accepted Answer

The Answer of Readers Room Bookstore has a chain of stores that sell used and new books. The company has recently hired a controller who used activity-based costing at her last job. At her suggestion, the store is in the beginning stages of implementing activity-based costing for its operations. The following activity pools have been identified:
1.	Inspection of used books before shelving
2.	Costs of human resources department
3.	Costs of computer department
4.	Salaries of sales clerks
5.	Costs of cleaning service

Required:
Identify at least one possible cost driver for each activity cost pool.

Readers Room Bookstore Has a Chain of Stores That Sell