535Worksheet_1 - S. Chan, Ph.D. IS 535 Worksheet #1...

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S. Chan, Ph.D. 1 IS 535 Worksheet #1 Exercise #1 Classification of Costs Company e-Grocery wants to conduct a series of focus group sessions to assess the potential of introducing grocery shopping using mobile devices. This project is called “mobile grocery project”. Each focus group has 8 participants who are paid $50 per session to provide comments on new e-Grocery mobile services. These focus groups meet in hotels and are led by a trained, independent, marketing specialist. Each specialist is paid a fixed retainer to conduct a minimum number of session and a per session fee of $2,000. An e-Grocery staff member attends each session to ensure that all the logistical aspects run smoothly. What is cost object? What is cost driver? Classify each of the following cost items as: a. Direct or Indirect (D or I) costs with respect to each individual focus group. b. Variable or fixed (V or F) costs with respect to how the total costs of e- Grocery’s mobile grocery project change as the number of focus groups conducted changes. ** Identify the cost object and cost driver first.**
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This note was uploaded on 10/11/2011 for the course ECT ect535 taught by Professor Susichan during the Fall '11 term at DePaul.

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535Worksheet_1 - S. Chan, Ph.D. IS 535 Worksheet #1...

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