Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 47

Classification of Costs The following are the costs incurred by a printing company.
1. Print machine setup costs
2. Cost of complexity; the number and variety of products
3. Training costs for new staff
4. Ink
5. Customer service costs
6. Paper
7. Redesign of the print process to improve efficiency
8. Machine operation labor
9. Order taking
10. Purchasing and stocking paper and other supplies
Required
1. Identify the above costs as (a) activity-based costs, (b) volume-based costs, (c) structural costs, or (d) executional costs.
2. Identify each cost as either a product cost or a period cost.
3. Identify which, if any, of these costs has a potential harmful environmental impact.