Levels of cost drivers. Each of the following is a potential activity driver. Identify the most likely level of each driver with U for a unit-level driver, B for a batch-level diver and P for a product-level driver. Loads of materials moved Materials cost Pounds of finished product produced Shipments to customers (where no finished goods inventory is maintained Number of part numbers used Machine hours Purchase orders issued (where large materials inventories are maintained Direct costs Pieces inspected (where output is 100% inspected) Pieces inspected (where only the first piece is inspected after each setup)
Levels of cost drivers. Each of the following is a potential activity driver. Identify the most likely level of each driver with U for a unit-level driver, B for a batch-level diver and P for a product-level driver. Loads of materials moved Materials cost Pounds of finished product produced Shipments to customers (where no finished goods inventory is maintained Number of part numbers used Machine hours Purchase orders issued (where large materials inventories are maintained Direct costs Pieces inspected (where output is 100% inspected) Pieces inspected (where only the first piece is inspected after each setup)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 6E
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Levels of cost drivers. Each of the following is a potential activity driver. Identify the most likely level of each driver with U for a unit-level driver, B for a batch-level diver and P for a product-level driver.
- Loads of materials moved
- Materials cost
- Pounds of finished product produced
- Shipments to customers (where no finished goods inventory is maintained
- Number of part numbers used
- Machine hours
- Purchase orders issued (where large materials inventories are maintained
- Direct costs
- Pieces inspected (where output is 100% inspected)
- Pieces inspected (where only the first piece is inspected after each setup)
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