\(O b s\) Refer to the facts presented in \(\mathrm{P}^{-}-1\).

\section*{Required}

A. For financial reporting purposes, are Tim and Ann's salaries and expenses considered a product cost or a period expense?

B. As illustrated in the problem, top management at Georgia Industries has established different compensation systems for manufacturing and sales employees. These managers made their decisions, based on an understanding of cost behavior, to help reduce risks and to motivate certain types of behavior. Would you classify Ann's salary as fixed, variable, or mixed? Why?

C. What type of behavior are managers at Georgia Industries attempting to motivate?

D. Does this type of compensation package reduce risk for Georgia Industries? Explain.

E. Describe various types of analyses the partners might conduct using monthly financial information.