Polar Bear Ski Wear is a shop that sells skiwear at a ski resort. Its cost accountant
Question:
REQUIRED
A. In a business such as retail sales, what usually causes the cost of electricity to vary?
B. In what time of year would most skiwear be sold at a ski resort?
C. In the scatter plot, the cost of electricity appears to be related to volume of retail sales. If this shop specialized in selling swimwear, would the scatter plot look different? Explain what would change.
D. Identify and explain another cost that is similar in nature to the cost of electricity. When you plot the cost against a cost driver, a relationship becomes apparent. However, the cost varies with something other than the cost driver. (Think of other situations where this type of relationship mightoccur.)
Step by Step Answer:
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott