Consider the following two cost objects: 1. Purchasing a pizza shop 2. Investing in a fishing boat
Question:
1. Purchasing a pizza shop
2. Investing in a fishing boat
REQUIRED
For each of the following costs, determine whether the cost is relevant to running a pizza shop (PS), investing in a fishing boat (FB), or both (B). Also, classify each cost as primarily fixed (F), variable
(V), or mixed (M).
A. Hourly wages
B. Ingredients
C. Employee benefits
D. Fishing equipment
E. Utilities
F. Advertising
G. Insurance
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Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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