COMMUNICATING IN PRACTICE LO2–1, LO2–2 Search the Internet or contact your local chamber of commerce or local chapter of the Institute of Management Accountants to find the names of manufacturing companies in your area. Call or make an appointment to meet with the controller or chief financial officer of one of these companies.

Required:

Ask the following questions and write a brief memorandum to your instructor that addresses what you found out.

1. What are the company’s main products?

2. Does the company use job-order costing or some other method of determining product costs?

3. How is overhead applied to products? What is the overhead rate? What is the basis of allocation? Is more than one overhead rate used?

4. Has the company recently changed its cost system or is it considering changing its cost system? If so, why? What changes were made or what changes are being considered?