Question
McDonald's recently released a video featuring GrantImahara, a former host from Mythbusters, about how its French fries are made.Some people have said that its French
McDonald'srecently released a video featuring GrantImahara, a former host from "Mythbusters," about how its French fries are made.Some people have said that its French fries are mashed-up potatoes (or other ingredients) pressed into French fry shapes.To see how the French fries are actually made, see the video athttps://www.youtube.com/watch?v=OU8CP-eES68(4:33 minutes.)
For this discussion question you should watch the 4 1/2 minute You Tube video by clicking on the link above and answer the four questions below as part of your original post to the discussion forum for this week.
- What is the distinction between productcosts and period costs?
- Why is it important to sort costs intoproduct costs and period costs?
- What are some product costs related toMcDonald's French fries (remember these could be Direct Materials, Direct Labor, or Manufacturing Overhead)?
- What are some period costs related to the sale of McDonald's French fries (remember period costs are those that are expensed and not included in the cost to make the fry itself)?
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