A Travel Agent Does Not Add Value by Creating an Itinerary

question 4

True/False

A travel agent does not add value by creating an itinerary that includes transportation, accommodations, and activities that are customized to your budget and travel dates.

---

Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Materials Costs

Expenses associated with the raw materials used in the manufacture of products.

Assembly Department

A specialized section within a manufacturing facility where components are assembled into final products.

Step-Down Method

A cost allocation method used in accounting to allocate overhead costs to various cost objects, starting with the department incurring the highest costs.