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The College of Business Administration needs to distribute $12,000 received from an anonymous donor and earmarked for three business student organizations, Beta Alpha Psi (BAP), Delta Sigma Pi (DSP), and Beta Gamma Sigma (BGS). Relevant information is provided below:
Assume that each organization wishes to obtain the highest funding possible.Required:
1) Which cost driver will each organization recommend be used to distribute the funds?
2) Which cost driver would you recommend and why?
Product Availability
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Safety Inventory
Additional stock kept in reserve to protect against uncertainties in demand or supply, ensuring product availability.
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