ACT 202: Introduction to Managerial Accounting Assignment Topic: Determining the Production cost and Cost Minimization Group members: 3 Submission date: Final Exam Day Requirements: Select a product from a small local store in your area who manufactures their own goods and sell it to customers all through the year. Your field job is to conduct an interview and find out their manufacturing process and relevant data for that particular product. Based on your interview data, you will have to determine the cost of the product (only for one product) and answer the following: 1. Find out their product details. 2. Write down the production process. 3. Determine the cost of the product (DM, DL and MOH). You need to calculate the cost/product. 4. What is the price of your product that the sales person is offering? Compare your price with other competitors? Find out the profit margin of the product. 5. Provide your insights without changing the existing price of the product: a. Is there any wastage in the production cost or in the entire system? Point out the areas with proper explanation. b. Can you reduce their production cost without compromising the product quality? c. How can you reduce cost (e.g., raw material cost/ labor cost/ MOH cost/ wastage/ selling or admin cost/supplier cost/ location cost or any other cost) for this business so that their profit margin increases? Provide your suggestion/observation