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Requirement 4. What should the plant controller do? The controller reclassify costs as so the plant manager can reap short-term benefits. The idea of correctly classifying costs is to properly reflect on the those costs that are directly related to manufacturing and to properly reflect on the those costs that will provide a future benefit. the numbers" again. Howitt insisted that if he didn't see a better operating income number the next time around he would be forced to look for a new controller. Requirement 1. Show numerically how operating income would improve by $840,000 just by classifying the preceding costs as product costs instead of period expenses. =Increaseinoperatingincome= Requirement 2. Is Howitt correct in his justification that these costs "are definitely related to our product"? The controller correct in his justification with respect to classifying costs as product or period costs; this determination is made by Research and development, as well as all costs related to warehousing and distribution of goods, should be classified as and be Requirement 3. By how much will Howitt profit personally if the controller makes the adjustments in requirement 1 ? Jason Howitt will profit personally by if the controller makes the adjustments. Requirement 4. What should the plant controller do? The controller reclassify costs as so the plant manager can reap short-term benefits. The idea of correctly classifying costs is to properly reflect on the those costs that are directly related to manufacturing and to properly reflect on the those costs that will provide a future benefit. the numbers" again. Howitt insisted that if he didn't see a better operating income number the next time around he would be forced to look for a new controller. Requirement 1. Show numerically how operating income would improve by $840,000 just by classifying the preceding costs as product costs instead of period expenses. =Increaseinoperatingincome= Requirement 2. Is Howitt correct in his justification that these costs "are definitely related to our product"? The controller correct in his justification with respect to classifying costs as product or period costs; this determination is made by Research and development, as well as all costs related to warehousing and distribution of goods, should be classified as and be Requirement 3. By how much will Howitt profit personally if the controller makes the adjustments in requirement 1 ? Jason Howitt will profit personally by if the controller makes the adjustments