that books use far fewer S,G & A resources relative to its merchandise costs and café uses far greater S, G & A resources relative to its merchandise costs.
3.
To: Super Bookstore Management Team
From: Cost Analyst
Re: Costing System
The current accounting system allocates indirect costs (S,G & A) to product lines based on the Cost of Merchandise sold. Using this method, the S, G & A costs are assigned 54%, 35%, 11%, to the Books, CDs, and Café product lines, respectively.
I recommend that the organization…
Words 1329 - Pages 6
