Volumetrica, a producer of audio equipment for large computer systems, is reviewing its policies as part of a biannual s

[answerhappygod]

Volumetrica, a producer of audio equipment for large computersystems, is reviewing its policies as part of a biannualself-examination of the company. As part of this process, allmanagers have been asked to carefully examine costs and determineas closely as possible which costs are direct and which areindirect.Linda Bedard and Sam Hilton, managers of different manufacturingdepartments in the same building, have been working together. Theyfound the following four costs that could be economically traced tothe products, but have historically been a part of overhead:
None of the costs is significant by itself, but together thesefour costs make up between 10 and 15% of the total cost of theproduct. Linda favors "leaving well enough alone," as she puts it,and leaving these costs in overhead. She is afraid that hervolunteering to trace these costs will result in her having totrace many more costs in the future. Sam, on the other hand,prefers to have the product cost as accurate as possible. He pointsout that these costs are already known, and the process wouldrequire little extra work.Required:You have been called on in your function as accounting manager toresolve the dispute. Write a memo to Linda and Sam, supporting oneor the other position. Be sure to adequately defend your position,but be brief.