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Choice of activity as the overhead cost driver in a service organisation's flexible budget.
Define overhead application and describe why direct labour hours would not be considered an accurate cost driver for allocating overhead costs for a hotel. Provide two examples of cost drivers that could be used in the hotel industry and justify your answer.
Spontaneous Judgments
Immediate assessments or decisions made without premeditation or extended deliberation.
Nonverbal Cues
Forms of non-linguistic communications, such as body language, gestures, facial expressions, and tone of voice, that transmit messages without words.
Emotional Effort
The energy expended to manage one's emotions to fulfill job or social roles.
Physical Effort
The exertion of physical energy by an individual to achieve a task or activity.
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