Manufacturing Vs. Customer Cost Hierarchy
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Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories:
- Variable
- Fixed
- Mixed
- Step
Would your company be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost drivers? Explain your answer and identify one cost for each of the four cost hierarchy categories. Present your findings in a manner that could be shared with the class.
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The solution discusses manufacturing vs. customer cost hierarchy.
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Solution: Disclaimer: This solution is only a guide to assist you in doing your work and that you can also put in some effort in writing sound answers that will display your understanding of the subject matter. I hope this helps.
Variable costs do change with an increase in terms of the amount of goods produced.
Fixed costs remain constant regardless of how much of a good or service is produced.
Mixed costs are a combination of both fixed and ...
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