Question: Consider the following two cost objects: 1. Purchasing a pizza shop 2. Investing in a fishing boat REQUIRED For each of the following costs, determine
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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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 full answer
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