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For each activity, identify which cost driver ( s ) from the list could reasonably be used to allocate that activity's cost to multiple Current
For each activity, identify which cost drivers from the list could reasonably be used to allocate that activity's cost to multiple Current Attempt in Progress
Natalie has her own business helping other service organizations manage their costs. She has seen many of these organizations
calculate only gross margin for their different service segments and then lump all of their support costs in one big pool, subtracted
from overall company gross margin, which then enables the organizationwide profit calculation. She knew she could help these
organizations group support costs into key activities and then allocate those activity costs to the appropriateservice segment. She
gathered the following information about key activities and possible cost drivers that she had used in other service organizations.
Executive management For each activity, identify which cost drivers from the list could reasonably be used to allocate that activity's cost to multiple
service segments. You may use the cost drivers more than once. For each activity, classify it as unitlevel, batchlevel, productlevel, or facilitylevel.
Classification
Accounting
Human resources
Fleet expenses
Information technology
Wellness services
Grounds maintenance
Executive management
service segments. You may use the cost drivers more than once.
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