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Identifying Cost Drivers for a Service Company. McHale Architects, Inc., designs, engineers, and supervises the construction of custom homes. The following activities were identified as

Identifying Cost Drivers for a Service Company.McHale Architects, Inc., designs, engineers, and supervises the construction of custom homes. The following activities were identified as being most important (step 1 and step 2 of activity-based costing), and cost pools were formed for each activity:

  1. Meeting with customers
  2. Coordinating inspections with the building department
  3. Consulting with contractors
  4. Maintaining office equipment
  5. Processing customer billings (invoices)

Required:

Perform step 3 of the activity-based costing process by identifying a possible cost driver for each activity.

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