The newly recruited manager is very concerned with the possible inefficiency and ineffectiveness of operating Gardenia Bakeries (KL) Sdn Bhd Quality Control department when he/she discovers that all the operating supervisors in his/her department are very lacking academic credentials. In order to overcome the problem, the manager decides to conduct a series of training sessions. In preparing the training materials, the manager requires you (as an intern) to conduct some research on the following:

(a) Based on your research, describe the concepts of: (i) Direct cost (3 marks) (ii) Indirect cost. (3 marks) (iii) Variable cost (3 marks) (iv) Fixed cost. (3 marks)

(b) Explain why it is very important for the supervisors to understand the concepts described by you at part (a) when they want to improve their efficiency and effectiveness within the department. (8 marks)

(c) In order to operate efficiently and effectively, there are certain costs that must be incurred by your department. (i) Identify Five (5) important costs incurred by your department. (10 marks) (ii) For each type of cost identified at part (c)(i) above, provide One (1) valid reason that such cost will help to improve the efficiency and effectiveness of your department. (10 marks)

(d) Refer to the costs at part (c)(i), assign them into the following categories, and apply the concepts you have described in part (a) to support your decision. (i) Variable costs and Fixed costs (10 marks) (ii) Direct costs and indirect costs (10 marks)