Cost Drivers
Review the very complex ABC cost allocation graphic provided below (with a bunch of three- letter abbreviations that you will NOT likely recognize!), used some years ago at a health sciences university.

Unit 9-Respond to the questions / requirements below.

1. What cost drivers might be appropriate for the depreciation (DEP), operation and maintenance of plant (IPA), and general administration (IGA) overhead cost pools?

2. What are the “products”, or final cost-objects, in this activity-based costing approach?

3. What does the curved arrow from the general administration (IGA) cost pool to the operation and maintenance of plant (IPA) cost pool suggest? How would such a cost allocation work, logistically?

In your post, indicate to which question number above you are responding. After you post at least one reply, the responses of your classmates will become available to you.