MyEducator - Accounting for MBAs

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• more gallons of ice cream, the volume of these activities must increase.

• the factory cleaners must come in and thoroughly clean the machines, removing all of the chocolate residue

• the more often the machines are stopped and started to begin a new batch, the more likely it is that the machines will break down, requiring more repairs.

• quality control inspections ensure the quality and flavor of each batch

• the accounting department must track a different mix of ingredients, with different costs, as they are inserted into the production process

• Operating the ice cream production process Producing a specific batch of ice cream Servicing the special needs of each individual ice cream flavor Keeping the factory open

• Operating

• Producing a specific batch of ice cream

• Servicing

• tied to the number of ingredients

• tied to the number of batches of ice cream produced by the company than to the number of gallons of ice cream produced

• Unit Batch Product line Facility support

• they correspond to four general categories that have been identified for use in any business setting that uses ABC