Scenario : TGA Processing plans to produce and sell (cookies) an industrial product (can be consumed by human/animal) t

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Scenario :

TGA Processing plans to produce and sell (cookies) an industrial product (can be consumed by human/animal) to its customers in West Malaysia. The factory consists of 5 departments: Storage, Production, Maintenance, Quality Control and Warehouse. The functions of the departments are as followed:
Choosen department : Storage Department


(a) Storage: receiving, storing and preparing raw materials before production.



The newly recruited manager is very concerned with the possible inefficiency and ineffectiveness of operating _________________ (Storage/Production/Maintenance/QC/Warehouse) department when he/she discovers that all the operating supervisors in his/her department are very lack of academic credential. In order to overcome the problem, the manager decides to conduct a series of training sessions. In preparing the training materials, the manager requires you (as an intern) to conduct some research on the following:

(a) Based on your research, using your department as cost object, describe the concepts of:

(i) Direct cost (3 marks)

(ii) Indirect cost. (3 marks)

(iii) Variable cost (3 marks)

(iv) Fixed cost. (3 marks)
(b) Explain why it is very important for the supervisors to understand the concepts

described by you at part (a) when they want to improve their efficiency and

effectiveness within the department. (8 marks)
(c) In order to operate efficiently and effectively, there are certain costs must be

incurred by your cost object.
(i) Identify Five (5) important costs incurred by storage department. (10 marks)
(ii) For each type of cost identified at part (c)(i) above, provide One (1) valid

reason that such cost will help to improve efficiency and effectiveness of

your department. (10 marks)
- Help me with, Question C (i) which is identify the 5 important costs that incurred in the storage department.