Your client brings you the following flow chart. Your client does thinks that using POR to apply factory overhead is too complicated. She wants you to treat factory overhead as an expense of the current period, rather than a manufacturing (product) cost.

Respond to her, using IRAC (see below). Use short concise sentences and transitional phrases. Take the matching principle into consideration.

IRAC

Issue (What is the issue) Job order costing.

Research (cite learning objective(s) from chapter 19 as authority)

Application (illustrate)

Conclusion