Presta-Serviços SA is a marketing research firm that organises focus groups for consumer product companies. Each focus

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Presta-Serviços SA is a marketing research firm that organises focus groups for consumer product companies. Each focus group has eight individuals who are paid ‚¬9000 per session to provide comments on new products. These focus groups meet in hotels and are led by a trained independent marketing specialist hired by Presta-Serviços. Each specialist is paid a fixed retainer to conduct a minimum number of sessions and a per-session fee of ‚¬360 000. A Presta-Serviços staff member attends each session to ensure that all the logistical aspects run smoothly.
Required
Classify each of the following cost items as:
a. Direct or indirect (D or I) costs with respect to each individual focus group.
b. Variable or fixed (V or F) costs with respect to how the total costs of Presta-Serviços change as the number of focus groups changes. (If in doubt, select the cost type on the basis of whether the total costs will change substantially if a large number of groups are conducted.) You will have two answers (D or I; V or F) for each of the following items:
Presta-Serviços SA is a marketing research firm that organises focus
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Management and Cost Accounting

ISBN: 978-1405888202

4th edition

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster

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