MGAB03H3 Lecture Notes - Lecture 6: The Home Depot, Indirect Costs, Fixed Cost

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AAA auto shop
Review of Cost flow and See notebook
Chapter 7
See learning Objectives,
Short answer questions on midterm 1variable cost and fixed
cost chap 2 and 3,
Short answer questions on midterm 2 Indirect costs and
overhead costs
Cost Hierarchy (see lecture notes)
Level
Activities
Activity
measure
s
Unit level
When you spend the money what do
you get in return, for the benefit of
making every single unit. Money spent
on every single unit (machine for
every unit, cap on bottles of beers)
Batch Level
Example: truck transporting a whole
bunch of cars, Home depot using a lift
to lift a crate from the back of the store
(palette has a lot of items)
Product
Level
Service
Level
Customer
Level
Organization
level
On midterm, give me a couple of benefits and limitation of
ABM
Leads to more accurate pricing
Leads
More calculation = more frustration = more employee stress
Do 7.46
Lecture 6 - Chapter 5.2 and 7
Thursday, May 24, 2018
3:16 PM
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