Bobby's Inc. operates a chain of restaurants across North Carolina. Each restaurant employs ten people: one is a mane salery plus a bonus equal to 2 percent of sales. Other employees three cooks, one dishwasher, and five servers, are paid salaries. Each manager is budgeted $4,000 per month for advertising costs. Required Classify each of the following costs incurred by Bobby's Inc. as fixed, variable, or mixed: & Advertising costs relative to the number of customers for a particular restaurant. b Rental costs relative to the number of restaurants Cooks' salaries at a particular location relative to the number of customers. & Cost of supplies (oups, plates, spoons, etc.) relative to the number of customers. Manager's compensation relative to the number of customers. Servers salaries relative to the number of restaurants paid a
Bobby's Inc. operates a chain of restaurants across North Carolina. Each restaurant employs ten people: one is a mane salery plus a bonus equal to 2 percent of sales. Other employees three cooks, one dishwasher, and five servers, are paid salaries. Each manager is budgeted $4,000 per month for advertising costs. Required Classify each of the following costs incurred by Bobby's Inc. as fixed, variable, or mixed: & Advertising costs relative to the number of customers for a particular restaurant. b Rental costs relative to the number of restaurants Cooks' salaries at a particular location relative to the number of customers. & Cost of supplies (oups, plates, spoons, etc.) relative to the number of customers. Manager's compensation relative to the number of customers. Servers salaries relative to the number of restaurants paid a
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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Transcribed Image Text:Bobby's Inc. operates a chain of restaurants across North Carolina. Each restaurant employs ten people; one is a manager paid a
salery plus a bonus equal to 2 percent of sales.
Other employees three cooks, one dishwasher, and five servers, are paid salaries.
Each manager is budgeted $4,000 per month for advertising costs.
Required
Classify each of the following costs incurred by Bobby's Inc. as fixed, variable, or mixed:
a Advertising costs relative to the number of customers for a particular restaurant.
b. Rental costs relative to the number of restaurants
c. Cooks' salaries at a particular location relative to the number of customers.
Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers.
Manager's compensation relative to the number of customers.
Servers salaries relative to the number of restaurants.
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