Management and Organizational Studies 3370A/B Chapter Notes - Chapter 7: Deutsche Luft Hansa, Stanchion, Financial Statement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Bill Dawson

Document Summary

Transaction drivers- simple count of the number of times an activity occurs. Duration drivers- a measure of the amount of time needed for an activity. Providing power to run processing equipment: batch-level- performed each time a batch is handled or processed, regardless of how many units are in the batch, ex. Placing po"s, setting up equipment, arranging for shipments to customers: costs at the batch level depend on the number of batches. Incurred once for each batch (or customer order: customer-level- relate to specific customers, ex. Sales calls, catalogue mailings, general technical support not tied to a specific product: organization-sustaining- carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made, ex. Designing a product, advertising a product, maintain a product manager/staff. Products and customers) --> activities --> consumption of resources --> cost.