Explain why some production costs are variable and some are fixed.

Analyze the benefit of recalculating the cost of pickle production.

• How would you recalculate it?
• What would the result be?
• What is the benefit to the company of recalculating the cost?

Analyze how financial accounting of production cost differs from managerial accounting of production cost.

• Explain the difference between the two accounting methods.
• Identify the benefits and drawbacks of each method.

Recommend a plan of action to management regarding Super Deals' offer.