Décor Carpets Incurs a Variety of Costs in Producing Several

question 40

Essay

Décor Carpets incurs a variety of costs in producing several grades of carpet for the residential and commercial housing industries.The different grades and styles are manufactured in batches or production runs.The company uses activity-based costing to assign overhead costs to its different product lines.Selected costs are provided in the following table: $$\begin{array} { | l | l | l | l | } \hline & \text { Cost Description } & \begin{array} { l } \text { Cost Hierarchy } \\( \mathbf { U } , \mathbf { B } , \mathbf { P } , \text { or F } )\end{array} & \text { Cost Driver } \\\hline \text { a } & \text { Set up costs for each production run } & & \\\hline \text { b } & \text { Inventory storage costs } & & \\\hline \text { c } & \text { Batch inspection costs } & & \\\hline \text { d } & \text { Indirect materials } & & \\\hline \text { e } & \text { Factory insurance costs } & & \\\hline \text { f } & \text { Material handling costs } & & \\\hline \text { g } & \text { Legal costs of protecting various patents } & & \\\hline \text { h } & \text { Utilities cost incurred to operate machinery } & & \\\hline \text { i } & \text { Depreciation of factory building } & & \\\hline\end{array}$$ Required:
Complete the table provided.In the Cost Hierarchy column,insert a (U)if the cost described is a unit-level cost,a (B)if a batch-level cost,a (P)if a product-level cost,or (F)if a facility-level cost.In the Cost Driver column enter a cost driver (for example,direct labor hours)that you believe might be appropriate for allocating that particular cost to units of products.

Recognize examples of product, process, business model, and social business innovations.

Comprehend how competitive advantage can be achieved through innovation.

Understand the concept of reverse innovation and its impact on global markets.

Grasp the importance of experimentation and scalability in innovation.

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Definitions:

Flocculus

A small, lobulated structure located in the cerebellum of the brain, involved in the coordination of eye movements and balance.

Cerebellum

A part of the brain located at the base of the skull, responsible for coordinating voluntary movements and maintaining balance and posture.

Balance

The ability to maintain the body's center of mass over its base of support, a function largely managed by the cerebellum and inner ear.

Eye Movements

The voluntary or involuntary movement of the eyes, helping in acquiring, fixating and tracking visual stimuli.