Classifying Costs\\n\\nConsider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items 1-5 represent cost activities associated with a particular store.\\n\\n1. Pepperoni on the pizza\\n\\n2. Wood to fuel the fire used to cook the pizzas (assume that ovens are maintained at the same temperature during business hours)\\n\\n3. Insurance on the building\\n\\n4. The labor costs for the employee building and cooking each pizza\\n\\n5. The costs associated with employees taking pizza orders\\n\\nRelative to the pizzas, classify each cost activity above as variable or fixed AND direct or indirect.
Classifying Costs\\n\\nConsider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items 1-5 represent cost activities associated with a particular store.\\n\\n1. Pepperoni on the pizza\\n\\n2. Wood to fuel the fire used to cook the pizzas (assume that ovens are maintained at the same temperature during business hours)\\n\\n3. Insurance on the building\\n\\n4. The labor costs for the employee building and cooking each pizza\\n\\n5. The costs associated with employees taking pizza orders\\n\\nRelative to the pizzas, classify each cost activity above as variable or fixed AND direct or indirect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Classifying Costs\\n\\nConsider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items 1-5 represent cost activities associated with a particular store.\\n\\n1. Pepperoni on the pizza\\n\\n2. Wood to fuel the fire used to cook the pizzas (assume that ovens are maintained at the same temperature during business hours)\\n\\n3. Insurance on the building\\n\\n4. The labor costs for the employee building and cooking each pizza\\n\\n5. The costs associated with employees taking pizza orders\\n\\nRelative to the pizzas, classify each cost activity above as variable or fixed AND direct or indirect.
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