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Unit level activities for a restaurant are the different departments within the restaurant. They include salad preparation, deep fryer, and entree preparation. It also includes waiters and waitresses, dishwashers, and hosts and hostesses.
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How can cost management system help companies determine the profits and costs?
Determining Costs: Use of Activity-Based costing in the management cycle where the main focus is managing activities rather than costs. Value Chain and Supply Chain analysis in the activity management. Identification of Value-Adding activities and eliminating Nonvalue-Adding activities. Eventually, from the cost hierarchy (Unit level, Batch level, Product/Service level and Operations level) the bill of activities are computed; and then the product unit costs are calculated.
What is difference between unit-level and batch-level activities?
Unit-level activity have costs that are incurred for every single unit that is produced. Batch-level activity have costs that are incurred for each batch that the company is going to produce, no matter if 3 or 30 units are being produced (e.g. setup costs). This is the explanation I received from my accounting professor at least.
How can batch level activities be applied to an airline?
If the unit-level activity is a single journey in an airplane, then the batch-level activity would be costs associated with the plane itself - salaries of maintenance workers that perform work on the plane, safety inspections of the plane, rental space in a hangar, etc. The product-level activities are costs of operating each of the airline's many routes (LAX-JFK).
What are third level activities?
Services
Discuss why overhead costing methods using plant-wide overhead rate or departmental overhead rates are no longer adequate for costing products and sevrices in other companies?
With advancing technology and intense competitions, companies will strive to provide wider varieties of goods and services. Companies will thus produce both simple and complex products. Complex products tend to consume more non-unit level activities. Examples of non-unit level activities are setups, inspections and equipment maintenance, etc. When there is a large proportion of non-unit level activities, plant-wide overhead rate and departmental overhead rates will result in inaccurate costing. This is because the two traditional methods use unit-level cost driver that cannot capture non-unit level activities with precision. An example of unit-level cost driver is machine hours, since every product requires machine time. Usually complex products are produced in lower volume than simple products. Since the traditional costing methods use a unit-level cost driver, simple products will have higher overhead costs than the complex products. The products will thus be priced higher. The complex products, which use more non-unit level activities are priced lower. Logically, complex products are more expensive than simpler products because of their more complicated production processes. These production processes involve more non unit-level activities. The inaccurate costing leads to inaccurate prices of products, i.e. overpricing the simpler products and underpricing the complex products. The overpriced products might lead the firm to shut down its production unit due to low demand. Similarly, the underpriced complex products will have unexceptionally higher demand. This will undermine the true profits made by the firm. Because although higher demands lead to higher sales, the revenue that the firm collects are, in fact, less than what it supposed to get, if proper costing method is used, e.g. ABC Costing. Companies will incur losses instead because of the high expenses incurred that are not captured in producing the complex products. Hence, the plant-wide rate and departmental rates are no longer adequate to use for costing products.Activity based costing refers to the methodology that identifies activities in a given organization and assigning each activity a given cost.
Would factory security and assembly activities be best classifies at an appliance manufacturing plant as unit-level batch-level product-level or organization-sustaining?
Organization for Security and unit for Assembly
What does the marketing department provide leadership activities in At the strategic business unit level?
C
What is the highes unit of hotel restaurant management?
There are many levels of management in a hotel or restaurant. While there are shift managers and assistant managers, the general manager or owner is the highest level of authority.
When setting up and evaluating activities in an activity based system it is a batch level and product level activities which generally provide the increased accuracy in costing?
ABC system has able to assign overhead cost to unit level, batch level, product level with cost driver '' cuse and effect ''
How can cost management system help companies determine the profits and costs?
Determining Costs: Use of Activity-Based costing in the management cycle where the main focus is managing activities rather than costs. Value Chain and Supply Chain analysis in the activity management. Identification of Value-Adding activities and eliminating Nonvalue-Adding activities. Eventually, from the cost hierarchy (Unit level, Batch level, Product/Service level and Operations level) the bill of activities are computed; and then the product unit costs are calculated.
What are non unit level overhead activities?
One example of non unit level overhead cost is the cost of business consulting. Another example is paying the CEO. These costs can't be linked to a direct product.
What are the main activities of a restaurant business?
The main activities of a restaurant business are cooking food, and serving it to the public.The main purpose of a restaurant business is to make money, by cooking food and serving it to the public.
What is difference between unit-level and batch-level activities?
Unit-level activity have costs that are incurred for every single unit that is produced. Batch-level activity have costs that are incurred for each batch that the company is going to produce, no matter if 3 or 30 units are being produced (e.g. setup costs). This is the explanation I received from my accounting professor at least.
What are second level activity?
Second level activities are activities that have to do with manufacturing.
The - unit coordinates all activities from CPU?
The control unit coordinates all activities of a CPU. The other parts of a CPU are arithmetic logic unit and memory.
What is the highest level you can be in Restaurant City?
well im the best at restaurant city because im level 66 and know one else is level 66
How can batch level activities be applied to an airline?
If the unit-level activity is a single journey in an airplane, then the batch-level activity would be costs associated with the plane itself - salaries of maintenance workers that perform work on the plane, safety inspections of the plane, rental space in a hangar, etc. The product-level activities are costs of operating each of the airline's many routes (LAX-JFK).
