Reference no: EM132533716

Visit 1: You recently visited and closely observed the operations at a fast-food restaurant. Identify activities and costs at the restaurant that fall into each of the following categories:

1. Unit-level activities and costs.
2. Customer-level activities and costs. (This is like a batch-level activity at a manufacturing company.)
3. Product-level activities and costs.
4. Facility-level activities and costs.

Visit 2: You and your friends go to a restaurant as a group. At the end of the meal, the issue arises of how the bill for the group should be shared. One alternative is to figure out the cost of what each individual consumed and divide up the bill accordingly. Another alternative is to split the bill equally among the individual

Question 1: Which system for dividing the bill is more equitable?

Question 2: Which system is easier to use?

Question 3: How does this issue relate to the material covered in this chapter? (Chapter 4- Activity based costing, ABC)