Question
Making Decisions With Cost Systems I categorized each of the following Cost Varieties by placing them within the Product Cost or Period Cost column/system. Cost
Making Decisions With Cost Systems
I categorized each of the following Cost Varieties by placing them within the Product Cost or Period Cost column/system.
Cost Variety | Product Cost | Period Cost |
Depreciation on PCs in marketing department Overtime premium paid assembly workers Wages paid to employees in finished goods warehouse Factory building maintenance department Factory security guards Wages of engineers in quality control Wages paid to assembly-line employees Fire insurance on plant
| Advertising expenses for T-shirts Fire insurance on corporate headquarters Property taxes paid on corporate headquarters Salaries of public relations staff Salary of corporate controller
|
Then I divided the Cost Varieties between the Product Cost and Period Cost systems, identify each product cost within the following appropriate sections: Direct Materials, Direct Labor, or Manufacturing Overhead.
Product Cost | Direct Materials | Direct Labor | Manufacturing Overhead |
Fire insurance on plant | Wages paid to employees in finished goods warehouse Wages of engineers in quality control Wages paid to assembly-line employees | Depreciation on PCs in marketing department Factory security guards Factory building maintenance department |
THE QUESTION: provide at least two recommendations for which types of costs David should pay the most attention to in order to reduce costs. (paragraph each) Include a rationale for each recommendation. (paragraph each)
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