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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
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. Variable or fixed Direct or indirect 1. Pepperoni on pizza Answer Answer 2. Wood to fuel fire Answer Answer 3. Insurance on building Answer Answer 4. Labor cost Answer Answer 5. Employees cost
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