In: Accounting
At a recent staff meeting, Daniel Hamburg – the production manager – raised concerns that John Healy – the newly recruited management accountant – is not considering all manufacturing costs while calculating product costs under the activity-based costing system. While John was attempting to address Daniel’s concern during the meeting, Tang Chu – the CEO – stopped him as the meeting had to finish soon. However, Tang told John to prepare a report addressing Daniel’s concern, which needs to be submitted before the next meeting. Imagine yourself as John and prepare the report.