Glaser Health Products is interested in using activity-based costing to identify as many costs as possible with the products. These costs will be used for planning and control decisions rather than for inventory valuation. The controller decided that all operation costs will be related to products but only those sales and administrative costs that are classified as unit-level, batch-level, or product-level costs should be related to products Using preliminary stage cost drivers, explain how individual items of costs will be traced to activity groupings. Solution Glaser Health Products is interested in using activity-based costing to identify as many costs as possible with the products. These costs will be used for planning and control decisions rather than for inventory valuation. The controller decided that all operation costs will be related to products but only those sales and administrative costs that are classified as unit-level, batch-level, or product-level costs should be related to products. Using preliminary stage cost drivers, explain how individual items of costs will be traced to activity gro upings Some costs can be traced directly to an end object. One example is the direct material and direct labour that goes into a product. But, there are other examples. The preparation of a product catalogue can consume many hours of indirect labour and other internal resources that would be attributable to a related activity cost pool, but it may also involve an outside printer/postage and that cost can be traced right to the .

1. Glaser Health Products is interested in using activity-based costing to identify as many costs as
possible with the products. These costs will be used for planning and control decisions rather
than for inventory valuation. The controller decided that all operation costs will be related to
products but only those sales and administrative costs that are classified as unit-level, batch-
level, or product-level costs should be related to products Using preliminary stage cost drivers,
explain how individual items of costs will be traced to activity groupings.
Solution
Glaser Health Products is interested in using activity-based costing to identify as many
costs as possible with the products. These costs will be used for planning and control
decisions rather than for inventory valuation. The controller decided that all operation
costs will be related to products but only those sales and administrative costs that are
classified as unit-level, batch-level, or product-level costs should be related to products.
Using preliminary stage cost drivers, explain how individual items of costs will be traced to
activity gro upings
Some costs can be traced directly to an end object. One example is the direct material and direct
labour that goes into a product. But, there are other examples. The preparation of a product
catalogue can consume many hours of indirect labour and other internal resources that would be
attributable to a related activity cost pool, but it may also involve an outside printer/postage and
that cost can be traced right to the