QUESTION FOUR
OP Ap
No. of shops 16 13 22
Division Copperbelt West South
(a) Personnel and staff training
(b) Window display, sales promotion, and advertising manufacturers.
Costs for the three service functions are budgeted for the next month, as shown below, and methods of apportioning these costs to the three retailing divisions must be determined.
Window display, sales promotion, and advertising
Warehousing and personnel training
000 K'O0O K'O0O
40 65 140
Wages
9 30 115
Transport
135 30
Other costs
South
Total
000
2,760
1,154
422
45
000
2,320
978
358
45
000
4,120
1,668
645
53
K'0OO
9,200
3,800
1,425
143
Sales
Cost of goods sold
Branch wages
Divisional administration
Required:
(a) Analyze the costs for the three service functions and determine the methods of apportioning these costs to the retailing divisions.
(b) State any limitations of the methods used for apportioning costs.