Description
three dog case.
KeyWords: Direct Costs, Indirect Costs, Variable Costs, Fixed Costs
1. To what cost objects could Three Dog Bakery trace its costs? a) Raw Materials: Flour, Eggs, Carrot, spinach, peanut, butter b) Labour: Chef, Maintenance person c) Administrative cost d) Packaging Cost e) Assembly Line, Conveyor Belt 2. Classify the various cost items as direct (D) or indirect (I) and fixed (F) or variable (V) with respect to production department. Salary of Production dept manager who oversees manufacturing: D and F Salaries of founders Dan dye and Mark Becloff I and F Cardboard trays used to package sets of 12 speciality biscuits D and V Salary of the graphic designer who prepares dogalog illustrations and layout I and F Annual maintenance service agreement for the shrink wrap machine D and F Wages paid to assembly line workers who mix Snickerpool ingredients in batches D and V Air conditioning costs for the entire baking commissary I and F Cost of flour, eggs, and carob icing for Rollover biscuits D and V 3. The Company produces its dogalog on a quarterly basis and mails copies to customers on the company's mailing list. Is the cost of producing and mailing the Dogalog considered as inventoriable cost or period cost? Why? The cost of producing and mailing the Dogalog is considered to be a period cost. Because the complete cost is recovered on quarter to quarter basis and no cost is passed onto the next period. Therefore it is not an inventoriable cost, and it is a period cost. 4. What sectors - manufacturing, merchandising, or service - does Three Dog Bakery operate in? Why are they classified in this way?
Three Dog Bakery operate in all the three sectos - manufacturing, merchandising, or service. They are classified in this way to divide the various costs and obtain the contribution and profit. Direct Cost: Cost which is directly contributing to the production process Indirect Cost: Cost which is not directly contributing to the production process Fixed Cost: Incurs in totality and expressed per unit Variable Cost: Incurs per unit and expressed in totality
doc_888909595.doc
three dog case.
KeyWords: Direct Costs, Indirect Costs, Variable Costs, Fixed Costs
1. To what cost objects could Three Dog Bakery trace its costs? a) Raw Materials: Flour, Eggs, Carrot, spinach, peanut, butter b) Labour: Chef, Maintenance person c) Administrative cost d) Packaging Cost e) Assembly Line, Conveyor Belt 2. Classify the various cost items as direct (D) or indirect (I) and fixed (F) or variable (V) with respect to production department. Salary of Production dept manager who oversees manufacturing: D and F Salaries of founders Dan dye and Mark Becloff I and F Cardboard trays used to package sets of 12 speciality biscuits D and V Salary of the graphic designer who prepares dogalog illustrations and layout I and F Annual maintenance service agreement for the shrink wrap machine D and F Wages paid to assembly line workers who mix Snickerpool ingredients in batches D and V Air conditioning costs for the entire baking commissary I and F Cost of flour, eggs, and carob icing for Rollover biscuits D and V 3. The Company produces its dogalog on a quarterly basis and mails copies to customers on the company's mailing list. Is the cost of producing and mailing the Dogalog considered as inventoriable cost or period cost? Why? The cost of producing and mailing the Dogalog is considered to be a period cost. Because the complete cost is recovered on quarter to quarter basis and no cost is passed onto the next period. Therefore it is not an inventoriable cost, and it is a period cost. 4. What sectors - manufacturing, merchandising, or service - does Three Dog Bakery operate in? Why are they classified in this way?
Three Dog Bakery operate in all the three sectos - manufacturing, merchandising, or service. They are classified in this way to divide the various costs and obtain the contribution and profit. Direct Cost: Cost which is directly contributing to the production process Indirect Cost: Cost which is not directly contributing to the production process Fixed Cost: Incurs in totality and expressed per unit Variable Cost: Incurs per unit and expressed in totality
doc_888909595.doc