Activity-Based Costing

question 122

Essay

Activity-based costing.Carlton Fisher,the manager of Kingfish Charters,uses activity-based costing to compute the costs of his deep-sea fishing charters.Each chartered boat holds six paying customers and a guide.The company offers two types of charters to corporations planning events-half-day trips for beginners and full-day trips for more seasoned fishermen.The breakdown of the costs is as follows:

Required:
a.Compute the cost of a corporate event requiring four boats for half-day charters for 28-persons (including four guides).
b.Compute the cost of a corporate event requiring four boats for full-day charters for 28-persons (including four guides).
c.Recommend a minimum price per customer to the manager if he wants to cover his costs.
(Kingfish Charters;activity-based costing. )

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Definitions:

Temperament Traits

Characteristics that determine an individual's typical responses to the environment, often considered innate or biologically based.

Emotional Behavior

Actions and reactions that are influenced by and express one's emotions, which can affect interpersonal relationships and decision-making processes.

Motivation

The psychological drive or force that initiates, guides, and maintains goal-oriented behaviors.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.