Each of the following is a cost incurred by Fairgood & Hernandez, a small CPA firm. REQUIRED
Question:
REQUIRED
Identify whether each of the following costs most likely relates to an
(1) organization-sustaining activity,
(2) facility-sustaining activity,
(3) customer-sustaining activity,
(4) product-sustaining activity,
(5) batch-level activity, or
(6) unit-level activity. For each item, explain yourchoice.
Transcribed Image Text:
A. Receptionist salary B. Financial forecasting software C. Photocopy machine rental D. Janitorial service E. Audit manager salary F. Long-distance telephone charges G. Meal costs for entertaining clients H. Costs of annual employee golf party l. Office supplies such as paperclips and tablets of paper J. Annual subscription for income tax regulations
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A 1 Receptionist salary is an organizationsustaining cost because the receptionist serves everyone w...View the full answer
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Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 392
2nd Edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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