Three cost drivers are used to estimate the cost of processing insurance claims. The cost drivers are: (1) claim amount, (2) age of vehicle in accident and (3) age of driver in accident. The percentages attributable to the cost drivers are 50% for claim amount, and 15% for each of the other two cost drivers. What is the cost to process Claim #101? The claim amount is $1,000. The age of the vehicle is 5 years. The age of the driver is 20 years.
举一反三
- Activityanalysis is used to identify appropriate cost drivers and their effects on thecosts of making a product or providing a service.
- The process of identifying appropriate cost drivers and their effects onthe costs of making a product or providing a service is called:
- The cost driver of an indirect cost is often used as the cost-allocation base.
- The auto market could be segmented by ( ) A: driver’s age, B: production scale C: engine size, D: cost
- Cost of capital isthe company’s cost of capital multiplied by the amount of the investment.