Question

1. Identifying Activity Bases in an Activity-Based Cost System

   Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed in the left column, select an appropriate activity base from the right column. You may use items in the dropdown list more than once or not at all.

   Activity	Activity Base
   Cafeteria
   Customer return processing
   Electric power
   Human resources
   Inventory control
   Invoice and collecting
   Machine depreciation
   Materials handling
   Order shipping
   Payroll
   Performance reports
   Production control
   Production setup
   Purchasing
   Quality control
   Sales order processing

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Answer 1

Activity	Activity Base
Cafeteria	Number of customers
Customer return processing	Number of customer returns
Electric power	kilowhatt hours used	Number of direct labour hours
Human resources	Number of employees
Inventory control	number of inventory transactions
Invoice and collecting	Number of sales orders
Machine depreciation	Number of machine Hours
Materials handling	Number of material moves
Order shipping	Number of production orders
Payroll	Number of payroll cheques processed
Performance reports	number of acounting reports
Production control	number of inventory transactions
Production setup	Number of production orders
Purchasing	Number of purchase orders
Quality control	Number of inspections
Sales order processing	Number of sales orders