Question

What are some possible activity bases Cold Stone Creamery could use to allocate each cost?

What are some possible activity bases Cold Stone Creamery could use to allocate each cost?

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Answer #1

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Cold stone creamery basically has two activities for allocation of costs.The first one is the cost of ice cream for making different types of ingredients for making the variety of ice cream that is desired by the consumer.The next one is time used by the worker or the employee to make such ice cream.Hence,for different ingredients different costs are charged along with the preparation time taken for preparing the ice creame may be some possible activity bases for Cold Stone Creamery could use to allocated each cost.

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