Topic: Benefit Corporation Costs

The discussion for this unit emphasizes the content of managerial accounting reports pertaining to subunits of the business. These reports may be very detailed to provide the necessary information for managers to make the correct decisions to control their department's costs. Read the scenario and then address the discussion questions.

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.