A Friend of Yours Has Built Up a Reputation in Hospitality

question 38

Essay

A friend of yours has built up a reputation in hospitality management and is an avid skier. Your friend is considering two equivalent job offers to manage services at ski resorts. One is in the town of Mt. Shasta, CA, 15 km SE of the peak of the mountain. The other is in Winter Park, CO, on the slope of the continental divide. Write a short email to your friend concerning factors from volcanic hazards only that may affect their decision.

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Definitions:

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate overheads more accurately.

Responsibility Centre

A unit or department within an organization, headed by a manager, who is accountable for its activities and financial performance.

Direct Costs

Expenses that can be directly attributed to the production of a specific product or service, such as materials and labor.

Resources

Assets, materials, or other inputs necessary for an organization to produce goods or services and operate effectively.