Look in the Yellow Pages or contact your local chamber of commerce or local chapter of CMA-Canada to find the names of manufacturing companies in your area. Call or make an appointment to meet with the controller or chief financial officer of one of these companies.

Required:

Ask the following questions and write a brief memorandum to your instructor that addresses what you found out.
1. What are the company’s main products?

2. Does the company use job-order costing, process costing, or some other method of determining product costs?

3. How is overhead assigned to products? What is the overhead rate? What is the basis of allocation? Is more than one overhead rate used?

4. Has the company recently changed its costing system, or is it considering changing its costing system? If so, why? What changes were made, or what changes are being considered?