REPLY TO CLASSMATES POST WK4

· Chapter 5 DB Topic #5 Desmond Otasowie

To distinguish between a traceable cost and a common cost, one must first understand it's definition and be able to apply it in a business setting. According to our textbook, a traceable cost is a cost that is a result of another fragment. Accordingly, a common cost supports more than a single fragment, however, cannot be linked back to anyone or whole segment. Essentially these two costs are opposites to each other. Nearly every business has a traceable and common cost, for it is almost impossible to have one without the other. 

Furthermore, I have been interested in the Food Services industry for quite some time. After reading and understanding these costs I could see how it applies to said industry. Costs that are traceable in the Food industry would be costs directly affecting the advancement of the industry. Hence it's traceable costs would be expenses pertaining to food transportation, safety inspection costs, and certifications, as well as the salary of the Chefs. 

Nevertheless, common costs associating with the Food industry would be indirect costs such as: parking lot improvements, security guard's salary, and store flyers. Another way to better understand the difference between a traceable cost and a common cost is by adding it to your everyday items. For example, when you buy a cell phone, the traceable cost is the cost of the phone and charger. While the common cost is the cost of any accessories bought such as: a phone case, and screen protector for said phone.