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:

Choose 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 lacking academic credentials. 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
(ii) Indirect cost.
(iii) Variable cost
(iv) Fixed cost.

(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.

(c) In order to operate efficiently and effectively, there are certain costs that must be incurred by your cost object.

(i) Identify Five (5) important costs incurred by the storage department. 

(ii) For each type of cost identified at part (c)(i) above, provide One (1) valid reason that such cost will help to improve the efficiency and effectiveness of
your department.

- Help me with, Question C (i) which identifies the 5 important costs incurred in the storage department.

Answer rating: 100% (QA)

Answer TGA Processing Quality Control Introduction Quality controls play a vital role in improving efficiency and effectiveness in the factory The aim of this paper is to describe cost concepts and an... View the full answer