Response to the following problem:
Assume that you must make a presentation to a client explaining the difference between prime and conversion costs. The client makes and sells 50,000 cookies per week. The client tells you that her sales staff also would like a clarification regarding product and period costs. She tells you that most of the staff lack training in managerial accounting.
Required:
Prepare a one-page memorandum to your client outlining your planned presentation to her sales staff.