Question
Classifying Costs Consider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items 1-5 represent cost activities associated with
Classifying Costs\ \ Consider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items 1-5 represent cost activities associated with a particular store.\ \ 1. Pepperoni on the pizza\ \ 2. Wood to fuel the fire used to cook the pizzas (assume that ovens are maintained at the same temperature during business hours)\ \ 3. Insurance on the building\ \ 4. The labor costs for the employee building and cooking each pizza\ \ 5. The costs associated with employees taking pizza orders\ \ Relative to the pizzas, classify each cost activity above as variable or fixed AND direct or indirect.
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