Refer to Nike’s 10-K report in Appendix C and “Item 1. Business” Nike’s contract manufacturers make the vast majority of Nike’s footwear. Assume these costs are variable to Nike. Nike’s largest fixed costs are associated with its distribution system. Consider one of Nike’s three distribution and customer service facilities in the United States. List several examples of step-fixed costs and mixed costs at these centers. For each of the following activities at a distribution center, list one plausible cost driver:
1. Receiving activity
2. Unpacking incoming cases of footwear
3. Picking and packing cases of footwear for shipment to retail accounts
4. Processing orders from retail accounts
5. Providing customer service to retail accounts
6. Processing order changes from retail accounts

  • CreatedNovember 19, 2014
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