Activity Levels and Cost Drivers Steve’s Slop Shop, a small hamburger shop, has identified the resources used in its operations (assume each customer’s order is a batch for this example):
a. Bread b. Hourly workers that cook hamburgers c. Store rent d. Ground beef e. Catsup f. Advertising for Triple-Burger special g. Salary for the store managers h. Utilities i. $1-off-coupon for each order j. Bags for each order
Required 1. Classify its costs as unit-level, batch-level, product-level, or facility-level costs. 2. Suggest a possible cost driver for each of the above items.
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