Problem
Respond with short answers in paragraph form.
What are the various methods that can be used to analyze distribution costs?
Why is it important for the controller to keep track of distribution costs?
What steps might a controller take if the distribution costs of a certain product exceed the actual price the customer was being charged?
What is meant by the term "standards" in the context of distribution costs?
Why is it important to set distribution standards?
Once a company has decided to set certain standards, they must maintain and record different types of information. Please discuss the type of information that must be kept track of. Why is this information useful?