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QUESTION 1 Quality Limousines maintains a fleet of ten limousines: 5 extended sedans used for airport transportation, 3 stretch limousines used for transportation to and

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QUESTION 1 Quality Limousines maintains a fleet of ten limousines: 5 extended sedans used for airport transportation, 3 stretch limousines used for transportation to and from local events, and 2 ultra stretch limousines used for all-night parties. Quality considers its "units" as individual vehicle bookings. Product lines are associated with the 3 types of vehicles. A "batch" of units constitutes all of the bookings for a particular date. Various costs associated with Quality's operations are listed below. Indicate whether each cost most likely relates to which ABC hierarchy level listed on the right. Each hierarchy may be used only once, more than once, or not at all. Cost of consultants who perform customer-satisfaction surveys. A. Unit-level activity Special advertising promotion in connection with a local football B. Customer-sustaining activity championship C. Organization or facility-sustaining activity Fuel costs for extended sedans during December 24 D. Batch-level activity Driver salaries for January 21 E. Product-sustaining activity Supplies for an ultra-stretch limousine booked on February 14. Consultant's salary for designing Quality's web page. Maintenance costs for ultra-stretch limousines General advertising campaign promoting all three product lines Market research conducted in local high schools Snacks and drinks for an ultra-stretch limousine booked for June 2

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