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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532 Exercise 36
Activity Levels and Cost Drivers Al's Speedy Gourmet, a small hamburger shop, has identified the following resources used in its operations (assume each customer's order is a batch for this example):
a. Bread f. Advertising for Triple-Burger special
b. Hourly help g. Salary for the store managers
c. Store rent h. Utilities
d. Ground beef i. $1-off-coupon for each order
e. Catsup j. Bags for each order
Required
1. Classify its costs as unit-level, batch-level, product-level, or facility-level costs.
2. Suggest a proper driver for each of the above items.
a. Bread f. Advertising for Triple-Burger special
b. Hourly help g. Salary for the store managers
c. Store rent h. Utilities
d. Ground beef i. $1-off-coupon for each order
e. Catsup j. Bags for each order
Required
1. Classify its costs as unit-level, batch-level, product-level, or facility-level costs.
2. Suggest a proper driver for each of the above items.
Explanation
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Verified
General level of cost hierarchy in Activ...
Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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