Question
3-55 Step and Mixed Costs and Cost Drivers Refer to Nikes 10-K report in Appendix C and Item 1. Business. Nikes contract manufacturers make
3-55 Step and Mixed Costs and Cost Drivers\ \ Refer to Nikes 10-K report in Appendix C and Item 1. Business. Nikes contract manufacturers make the vast majority of Nikes footwear. Assume these costs are variable to Nike. Nikes largest fixed costs are associated with its distribution system. Consider one of Nikes three distribution and customer service facilities in the United States. List several examples of step-fixed costs and mixed costs at these centers. For each of the following activities at a distribution center, list one plausible cost driver:\ \ Receiving activity\ \ Unpacking incoming cases of footwear\ \ Picking and packing cases of footwear for shipment to retail accounts\ \ Processing orders from retail accounts\ \ Providing customer service to retail accounts\ \ Processing order changes from retail accounts\
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