answer the three following prompts/questions

1. Assume that you are the manager of the Campus Store. Upon reviewing your 2019/2020 Income Statement (July 1, 2019 through June 30, 2020) you concluded that your expenses are too high. Please list at least 3 variable and 3 fixed expense line items, which you want to decrease in the upcoming year and how you are going to do this. Please discuss benefits and risks (i.e. impacts on customers and revenues) of your cost cutting measures.

2. Costing. Please think about a real life manufacturing or service company (big or small) that would be a good fit for the Job Order Costing method. Explain why you feel that your company would be a good candidate for job order costing. Also, give at least one example each for direct labor, direct material and manufacturing overhead cost in your company. Finally, explain what allocation base you would suggest for the calculation of the predetermined overhead rate and why.

3. Please think about a real life manufacturing company (big or small) that would be a good fit for the Process Costing method. Explain why you feel that your company would be a good candidate for Process Costing). Also, describe how you believe the units of product move through the processing department(s) and how direct labor, direct material and manufacturing overhead cost are added in each department (keep in mind that direct labor and material in process costing are traced to processing departments rather than units of products). Finally, explain what allocation base you would suggest for the calculation of the predetermined overhead rate(s) in your processing departments and why.