Problem: Lavish Lamps produces high-quality lighting fixtures in its manufacturing plant. The fixtures are designed and manufactured according to the customer's specifications and are therefore made-to-order. The plant manager has provided you with the following list of key activities within the plant:
• Product design
• Production scheduling
• Purchasing department
• Receiving department
• Machine set-up
• Quality control
• Plant security
• Customer credit check
• Machine operation
• Maintenance
Required:
For each of these activities:
• Identify a cost object and a cost driver.
• How would you recommend recording each of these costs?
• How should these costs be allocated to lighting fixtures?
800 to 900 words and references need to review before paying to ensure covers to subject.