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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Step by Step Answer:
A B F V or M There would most likely be hourly wages in both types of businesses assuming employees are hired In the pizza shop employees are likely s...View the full answer
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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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