Describe a variable, fixed, mixed and step cost in an organization. Would this organization be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost drivers? Why? Identify a cost in each of the four cost hierarchies.© BrainMass Inc. brainmass.com July 22, 2018, 2:39 pm ad1c9bdddf
National Linen launders commercial tablecloths, bedding, garments and rags for restaurants, medical facilities, hotels and auto repair shops. Costs that fit each of the categories include:
Variable: laundry soap, water, folding labor
Fixed: plant rent, IT cost
Mixed: utilities at the plant, fleet maintenance
Step: supervision labor; number of delivery trips
The firm is more likely to benefit from ...
Your discussion is 257 words and describes a commercial laundry firm, explaining why customer cost would be a better hierarchy for them.