Question: Classifying Costs Consider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items 1 - 5 represent cost activities associated
Classifying Costs
Consider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items represent cost activities associated with a particular store.
Pepperoni on the pizza
Wood to fuel the fire used to cook the pizzas assume that ovens are maintained at the same temperature during business hours
Insurance on the building
The labor costs for the employee building and cooking each pizza
The costs associated with employees taking pizza orders
Relative to the pizzas, classify each cost activity above as variable or fixed AND direct or indirect.
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