Question 1: Assume a local hotel is a service entity. Give some examples of the hotel’s direct and indirect costs, specifying the cost object of each. How might the hotel’s management use this information?
Question 1: Assume a local hotel is a service entity. Give some examples of the hotel’s direct and indirect costs, specifying the cost object of each. How might the hotel’s management use this information?
Question 2: Discuss what may be the issues in using
Question 3: The following costs relate to Telecommunications Fiji Inc.
1. The salaries of the technicians who install new phone and data lines.
2. The salaries of the scientists and engineers who develop new services.
3. The cost of cables used to connect new services.
4. The salaries paid to sales staff.
5. The salaries of staff who deal with customer complaints.
6. The cost of fuel for vans used by technicians who install new services.
7. The cost of advertising in the newspapers.
8. The salaries of technicians who resolve service problems.
9. The cost of fuels for vans used by technicians who resolve service problems.
Required: Classify the costs listed above using the following value chain classifications:
(a) Research and development (b) Design
(c) production/ delivery (d) marketing (e) customer support
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