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15_InClassActivities_EnquirerDetroitMotorWorks_

15_InClassActivities_EnquirerDetroitMotorWorks_ - ACC...

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ACC 333 (Farrell) Class 15 Fall 2011 Page 1 of 2 In-Class Activity #1 – Identifying Possible Cost Drivers at The Enquirer Listed below are various cost objectives for The Cincinnati Enquirer . An accounting manager has broken down the costs that comprise the total for each cost objective, and has selected particular costs to analyze further. Specifically, the manager wants to know what activities may drive these particular costs. For each cost listed, identify a possible cost driver. The first one is completed as an example. Possible Cost Driver(s) Cost objective = News department: Cost = Travel costs Number of trips taken by reporters Distance travelled Cost objective = Newspaper production department: Cost = Total wages for workers who run presses Cost = Total wages of workers who maintain presses Cost = Total supervisors’ salaries Cost = Total depreciation on printing presses Cost objective = Newspaper delivery: Cost = Delivering newspapers to mailboxes of rural customers Cost = Shipping newspapers to out-of-town subscribers
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