Problem

Identifying Cost Drivers in an ABC SystemFor each of the following activities, indicate th...

Identifying Cost Drivers in an ABC System

For each of the following activities, indicate the appropriate category (unit, batch, product, customer, or facility level) and suggest a possible cost driver for each pool.

1.Factory utilities.


2. Machine setups.


3. Research and development for a new product.


4. Sanding rough edges of the product.


5. Packaging the product for shipment.


6. Developing new packaging for a special order of 200 units.


7. Maintenance on equipment.


8. Assembling the product's component parts.


9. Material handling costs.

10. Quality control testing.

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