Classifying Cost Drivers Henderson Construction managers provide design and construction management services for various commercial construction projects. Senior managers are trying to apply cost driver concepts to their firm to better understand Henderson’s costs.

Required Classify each of the following actions or decisions as structural, organizational, or activity cost drivers.

a. The decision to be a regional leader in computer-assisted design services.

b. The decision to allow staff architects to follow a specific project through to completion.

Ge The daily process of inspecting the progress on various construction projects.

d. The process of conducting extensive client interviews to assess the exact needs for Henderson services.

e. The decision to expand the market area by establishing an office in another state.

f. The decision to use only Henderson staff rather than relying on subcontractors.

The process of receiving approval from government authorities along with appropriate permits for aS each project.

h. The decision to organize the workforce into project teams.

i. The decision to build a new headquarters facility with areas for design and administration as well as storage and maintenance of construction equipment.
j. The process of grading building sites and preparing forms for foundations.