Steves Slop Shop, a small hamburger shop, has identified the resources used in its operations (assume each customers order is a batch for this example):

Required:

1. Classify its costs as unit-level, batch-level, product-level, or facility-level costs.

2. Suggest a proper driver for each of the items.

Required 1

Classify its costs as unit-level, batch-level, product-level, or facility-level costs. (If an activity can be classified with more than one selection, choose the option that contains ALL the appropriate classifications.)

	Resources	Cost Hierarchy
a.	Bread
b.	Hourly workers that cook hamburgers
c.	Store rent
d.	Ground beef
e.	Catsup
f.	Advertising for Triple-Burger special
g.	Salary for the store managers
h.	Utilities
i.	$1-off-coupon for each order
j.	Bags for each order

Required 2

Suggest a proper driver for each of the items. (If an activity can be classified with more than one selection, choose the option that contains ALL the appropriate classifications.)

	Resources	Cost Driver
a.	Bread
b.	Hourly workers that cook hamburgers
c.	Store rent
d.	Ground beef
e.	Catsup
f.	Advertising for Triple-Burger special
g.	Salary for the store managers
h.	Utilities
i.	$1-off-coupon for each order
j.	Bags for each order