Question: Describe a potential cost driver for each of the variable and mixed costs you listed. Explain why each cost driver would be appropriate for its
Describe a potential cost driver for each of the variable and mixed costs you listed. Explain why each cost driver would be appropriate for its associated cost.
Direct materials: raw materials inventory, amortized equipment expense
Direct labor: manufacturing engineering and manufacturing test organizations,
Direct manufacturing overhead: Contractual obligations such as operating lease and financing lease obligations, payroll and salary and wages expenses, human resources
Period costs: marketing, contract and professional services, engineering and research, personnel and facilities costs related to stores, contractual obligations such as operating lease and financing lease obligations, income taxes
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