Question
Explain what is meant by an activity measure. Identify an appropriate activity measure for analyzing the cost structure of the book donations department within the
Explain what is meant by an activity measure. Identify an appropriate activity measure for analyzing the cost structure of the book donations department within the university's library. Justify your answer. Is the activity measure you identified a true cost driver? Explain. 2. Cost Analysis: a. Identify each cost associated with the library's book donations department. b. Classify each cost associated with the library's book donations department as fixed or variable. c. Classify each cost associated with the library's book donations department as direct or indirect, assuming that the cost object of interest is the book donations department as a whole. Justify your classifications. Would your classifications change if you were to assume that the cost object of interest were an individual book processed? Explain. 3. Explain what is meant by a unit cost. Is the initial unit cost used by the budget committee computationally appropriate? Explain. Does the inclusion of fixed costs as a component of the unit costs make it problematic for managerial analysis purposes? Create an Excel Spreadsheet with: a. Your Calculation, b. University Budget Committee Calculation, c. Budget Committee Calculation for Doubling Book Donations from 1,000 to 2,000 books, d. Budget Committee Calculation for eliminating entire