Tania is the production manager for Manikato Winery. Tania has responsibility for all aspects of white wine
Question:
Tania is the production manager for Manikato Winery. Tania has responsibility for all aspects of white wine production by Manikato. Red wines are produced at a different geographical locations and managed separately. For the current year, classify each of the following items as controllable income, expenses or investments for Tania’s operation. Explain your decision and indicate where responsibility might lie.
Item |
Staff wages — white wine facility. |
Machine operating costs — white wine facility. |
New machine purchase — red wine facility. |
Supermarket sales — white wine. |
Market research expenses — new sparkling wine product. |
Increased direct material cost for white wine due to recipe change. |
General manager’s salary. |
Insurance for white wine facility. |
Sales returns for white wine due to spoilage. |
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett