Listed Below Are the Activities of Tammy's Toy Store

question 42

Essay

Listed below are the activities of Tammy's Toy Store. Identify the level at which each activity would be classified in the cost hierarchy used with ABC. Indicate each activity as unit level (UL), batch level (BL), product level (PL), or facility level (FL).
$\begin{array}{ll}\_\_\_\_\text { a. Desiguring a new product}&\_\_\_\_\text {e. Assembling the product }\\\_\_\_\_\text { b. U sing direct materials}&\_\_\_\_\text {f. Receiving raw materials }\\\_\_\_\_\text {c. Setting up equipment }&\_\_\_\_\text {g. H andling materials }\\\_\_\_\_\text { d. Maintaining a building}&\_\_\_\_\text { h. Cleaning up processsing area}\\\end{array}$

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Definitions:

Rate of Return

The profit or deficit achieved from an investment within a certain timeframe, described as a proportion of the investment's initial value.

Net Annual Cash Inflow

The difference between the total cash inflows and outflows of a business over a one-year period.

Internal Rate of Return

A metric used in finance to estimate the profitability of potential investments, calculating the rate of return where the net present value of all cash flows is equal to zero.

Cash Inflows

Funds entering a business from various sources like sales, financing, and investments.