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

Exercise 8

Activity Levels and Cost Drivers Shroeder Machine Shop has the following activities:
a. Machine operation
b. Machine setup
c. Production scheduling
d. Materials receiving
e. Research and development
f. Machine maintenance
g. Product design
h. Parts administration
i. Final inspection
j. Materials handling
Required
1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity.
2. Identify a proper cost driver for each activity in requirement 1.