Question
You hire a new assistant production manager whose prior experience is with a family home construction company that produces goods to order. Your company engages
You hire a new assistant production manager whose prior experience is with a family home construction company that produces goods to order. Your company engages in continuous production of homogeneous products that go through various production processes. Your new assistant emails you questioning some cost classifications on an internal reportspecifically why the costs of some materials that do not actually become part of the finished product, including some labor costs not directly associated with producing the product, are classified as direct costs. Respond to this concern.
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