Mullin Tree Services, Inc., provides a wide variety of landscaping services to residential and commercial clients. The company has defined one cost pool that relates to grinding the stumps of trees it has removed. The resources in this pool included a machine specialized to the grinding task, an operator who works only on stump grinding, and a vehicle used to remove the waste generated by grinding and removal. Mullin is considering no longer offering this service. If it does so, the machine and vehicle would be sold and the operator offered work in another division of the company. Expenditures on the above resources may be described as:

Question

Quizplus · Accepted Answer

The expenditures on the machine, vehicle, and operator are avoidable because if Mullin Tree Services, Inc. decides to stop offering the stump grinding service, these costs can be eliminated by selling the machine and vehicle and reallocating the operator to another division.