1. Discuss the steps Greg should take to complete the project and then maintain the expense allocation process going forward. Based on the data provided, what additional steps can be taken to improve the product expense allocation process at AXE Life?
PHASE II: ACTIVITY-BASED COSTING
Greg charges the project team to begin work on the second phase of the project, which is to use the expense allocation process to begin to develop activity-based costs. As an initial step, the team reviews the information provided on the activities performed by each of the functions as shown in Table 2, Panel D, and categorizes the activities as unit, batch, product, and facility.
2. Activities can be categorized as unit, batch, product, and facility. Provide the definitions of each of these categories and then use the information in Table 2, Panel D, to categorize the activities as unit, batch, product, or facility.