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Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 7ISBN: 978-0077733773Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 7ISBN: 978-0077733773 Exercise 11
Activity Levels and Cost Drivers Steve's Slop Shop, a small hamburger shop, has identified the resources used in its operations (assume each customer's order is a batch for this example):
a. Bread
b. Hourly help
c. Store rent
d. Ground beef
e. Catsup
f. Advertising for Triple-Burger special
g. Salary for the store managers
h. Utilities
i. $1-off-coupon for each order
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
b. Hourly help
c. Store rent
d. Ground beef
e. Catsup
f. Advertising for Triple-Burger special
g. Salary for the store managers
h. Utilities
i. $1-off-coupon for each order
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
Verified
Verified
Activity based costing:
In activity-bas...
Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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