Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed in the left column, select an appropriate activity base from the right column. You may use items in the dropdown list more than once or not at all. Activity Activity Base Cafeteria Customer return processing Electric power Human resources Inventory control Invoice and collecting Machine depreciation Materials handling Order shipping Payroll Performance reports Production control Production setup Purchasing Quality control Sales order processing

Question

23-03-2020
Business

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Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed in the left column, select an appropriate activity base from the right column. You may use items in the dropdown list more than once or not at all. Activity Activity Base Cafeteria Customer return processing Electric power Human resources Inventory control Invoice and collecting Machine depreciation Materials handling Order shipping Payroll Performance reports Production control Production setup Purchasing Quality control Sales order processing

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Answer:

Cafeteria : Square Footage

Customer return processing : Number of Customer returns

Electric power : Kilowatts hours used

Human resources : Number of Employees

Inventory control : Number of Inventory Transactions

Invoice and collecting : Number of Customers

Machine depreciation : Number of Machine Hours

Materials handling : Number of Material Moves

Order shipping : Number of Inventory Transactions

Payroll : Number of payroll cheques

Performance reports : Number of Performance Reports

Production control : Number of Production Orders

Production setup : Number of Setups

Purchasing : Number of Purchase orders

Quality control : Number of Inspections

Sales order processing : Number of Sales Orders

Explanation:

The activities are as

Cafeteria

Customer return processing

Electric power

Human resources

Inventory control

Invoice and collecting

Machine depreciation

Materials handling

Order shipping

Payroll

Performance reports

Production control

Production setup

Purchasing

Quality control

Sales order processing

For each activity the value is given as