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1. You have decided to start a lawn service business to help pay your tuition so...

1. You have decided to start a lawn service business to help pay your tuition so that you can complete your undergraduate accounting degree. You plan to provide various lawn maintenance services that will include lawn mowing services, aeration and fertilization. You and two of your friends have agreed to work for you in this new business endeavor.

Which of the following best describes a structural cost driver for your new business?

Select one:

A. Preparing monthly billing statements for clients

B. Determining the types of lawn services that you will provide for clients

C. Providing employees with the authority to make decisions regarding a client

D. Hiring and training new employees

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Answer #1

Structural Cost Drivers are relating to choices and options relating to operations for serving the customers.

according to that the answer should be :

B. Determining the types of lawn services that you will provide for clients.

Different types of lawns will be the base of allocating different costs.

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