Unit 1 Solution Key to Sample Problems - revised.pdf - Unit...

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1 Unit One: Solution Key to Sample Problems 1-18 Value chain and customer expectations. 1. Design 2. Marketing 3. Customer service 4. Research and development 5. Marketing 6. Production 7. Marketing 8. Distribution 2-16 Classification of costs, service sector. Cost object: Each individual focus group Cost variability: With respect to the number of focus groups There may be some debate over classifications of individual items, especially with regard to cost variability. Cost Item D or I V or F A B C D E F G H D I I I D I D I V F V a F V F V V b a Some students will note that phone call costs are variable when each call has a separate charge. It may be a fixed cost if Consumer Focus has a flat monthly charge for a line, irrespective of the amount of usage. b Gasoline costs are likely to vary with the number of focus groups. However, vehicles likely serve multiple purposes, and detailed records may be required to examine how costs vary with changes in one of the many purposes served.
2 2-24 Variable costs, fixed costs, relevant range.

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