Assume that you are preparing for a second interview with a manufacturing compan
ID: 2379703 • Letter: A
Question
Assume that you are preparing for a second interview with a manufacturing company. The company is impressed with your credentials but has indicated that it has several qualified applicants. You anticipate that in this second interview, you must show what you offer over other candidates. You learn the company currently uses a periodic inventory system and is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items. To show your abilities, you plan to recommend that it use a cost accounting system.
Instructions: In preparation for the interview, write a memo to the CFO of the company outlining the following:
Explanation / Answer
1. Job cost accounting should be recommended because it keeps track of the various wages and materials used for each individual job.
2. The necessary documents would include the pay rate of each employee working a job, how many hours they work each job, and how many materials go into each job.
3. They facilitate the operation by offering a specific amount for each specific job. The costs will vary as the jobs vary.