(SOLVED) TPS Incorporated is using activity based cost information to determine whether


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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:
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 check out begins.
Could TPS reduce the number of cashiers at their stores if the organizing activity were transferred to clerks? What other considerations should TPS investigate before assigning the organizing task to the clerks?

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