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Scenario: You are an accounting manager at a Benefit Corporation tasked with the following: The production manager just called you to say something is awry

Scenario:You are an accounting manager at aBenefit Corporationtasked with the following: The production manager just called you to say something is awry with the costs involved with their "green" detergent production. They ask why workers are using more materials than usual in the production of the detergent. They also want to know why the direct labor cost has increased compared to previous months.

  • What documents and data might you want to examine and why?
  • Discuss the potential issues that might prevent the company from buying cheaper materials.
  • Also, discuss the potential issues that a manager confronts when they need to incur more direct labor costs to comply with the production deadlines.

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