(Identifying cost drivers) The Lunch Bucket is a highly automated, fast-food res taurant that relies on sophisticated,...
Question:
(Identifying cost drivers) The Lunch Bucket is a highly automated, fast-food res¬ taurant that relies on sophisticated, computer-controlled equipment to prepare and deliver food to customers. Operationally and organizationally, the restaurant operates like other major franchise fast-food restaurants. Determine whether each of the following costs are unit level (U), batch level (B), product/process level (P), or organizational level (O).
a. Store manager’s salary
b. Frozen french fries
c. Napkins
d. Oil for the deep-fat fryer
e. Maintenance of the restaurant building
f. Wages of employees who clear and clean tables g. Electricity expense for the pizza oven h. Property taxes i. Depreciation on kitchen equipment j. Refrigeration of raw materials LO1
Step by Step Answer:
Cost Accounting Traditions And Innovations
ISBN: 9780538880473
3rd Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney