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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Classifying costs and identifying the appropriate cost driver
Fairfield Manufacturing incurred the following costs during 2011 to produce its high-quality precision instruments. The company used an activity-based costing system and identified the following activities.
Inspection of each batch produced.
Salaries of receiving clerks.
Setup for each batch produced.
Insurance on production facilities.
Depreciation on manufacturing equipment.
Materials handling.
Inventory storage.
Required
Classify each activity as a unit-level, batch-level, product-level, or facility-level activity.
Identify an appropriate cost driver (allocation base) for each activity.
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