You are the Controller (or Comptroller if you prefer) for one of five regional plants manufacturing...

Question

You are the Controller (or Comptroller if you prefer) for one of five regional plants manufacturing ugly holiday sweaters (the kind they hold contests for), the uglier the better. Unfortunately, while your sweaters are ugly, they also cost more to make than the other four regional plants. How would you assess your manufacturing processes to determine why they cost more.

This is an optional part of the question but consider how selling price and gross margin fit into the discussion. While the cost more, are your sales higher, and if so, why?

Nitish Lath · Accepted Answer

The identification of manufacturing process involves various steps and the cost of each process is different. In the case, the entity is having five regional plants and in case of one plant the cost of manufacturing is very higher as compared to other plants. The manager can assess the cost of manufacturing a product based on nature of costs.

You are the Controller (or Comptroller if you prefer) for one of five regional plants manufacturing ugly holiday sweaters (the kind they hold contests for), the uglier the better. Unfortunately, while...

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