Consider the Following Costs That Relate to a Bank and a Manufacturer

question 71

Essay

Consider the following costs that relate to a bank and a manufacturer of software:
Bank
1.Review cost of commercial loan applications
2.Operating cost of human resources department
3.Immediate processing cost of a specific customer's cash deposit
4.Bank membership cost of joining local Chamber of Commerce
Software manufacturer
5.Label and packaging charges from a commercial printer for a new software release
6.Air conditioning/heating costs of the firm's production plant
7.Transport cost of moving the CD-output from production run no.1 to the company's warehouse
8.Design,development,and coding cost of new spreadsheet software
Required:
A.

A.Classify the eight costs listed as arising from either a unit-level,batch-level,product-sustaining,or facility-level activity.
B.The number of loan applications would be more appropriate because it has a higher correlation with the amount of review cost incurred.Applications create review cost;customers,on the other hand,may not.
B.Would number of loan applications or number of customers be a more appropriate cost-driver base for the review of loan applications? Briefly explain.

---

Definitions:

Physiological Urge

A physiological urge is a strong natural impulse or desire that arises from the body's physical needs or responses, such as hunger, thirst, or the need for sleep.

Addictive Behavior

Actions characterized by an intense desire to repeatedly engage in activities or consume substances despite potential harm.

Major Violations

Serious breaches of rules or laws, which often result in significant penalties or consequences.

Likelihood Of Relapse

The probability or risk of returning to addictive behaviors or substance use after a period of abstinence or recovery.