Following are ten cost activities that might be incurred in an organization.
(a) Paying a franchise license fee
(b) Transferring a production run to the warehouse
(c) Setting up a printer to run 5,000 copies of a text book
(d) Maintaining engineering designs for company products
(e) Using wood to manufacture a table
(f) Depreciating a factory building
(g) Delivering meals to hospital patients
(h) Putting a stamp on an envelope
(i) Developing dietary guidelines for special-need meals in a rest home
(j) Drilling a hole in a product
Required:
Classify each of the costs as unit-level, batch-level, product/process level, or organizational level. Identify a cost driver for each item, and explain why that driver is appropriate.