Visit a local copy and graphics shop or a pizza restaurant A

Visit a local copy and graphics shop or a pizza restaurant. As you observe the operation, consider the costs associated with running the business. As a group, identify as many costs as you can and classify them according to the following table headings:

Cost   Direct Materials   Direct labor   Overhead   Selling Expenses

Solution

Cost Direct materials Direct labor Overhead Selling expenses Ingredients such as pizza base, sauce, vegetables, meat etc Wages for employees. Rent, utilities, insurance, property taxes Sales commisions, travel