Assume You Have Just Taken a Position as Controller for a New

question 53

Essay

Assume you have just taken a position as controller for a new company that manufactures and sells wrought iron wall hangings. Although the founder of the company who is the president and CEO is a great artisan she has very limited knowledge of accounting.
Instructions
To help your new boss better understand accounting for a manufacturing organization prepare a response to her in which you: (1) identify (2) describe and (3) provide examples of the three manufacturing costs and the three inventory accounts used in accounting for a manufacturing company.

Understand the concept of marginal revenue product (MRP) and its significance in employment decisions.

Recognize the effects of unionization and labor market regulations on wages and employment.

Calculate and understand the concept of marginal labor cost.

Evaluate the firm's hiring decisions based on profit maximization in different market conditions.

---

Definitions:

Perfected

The state of a security interest when the secured party has done everything that the law requires to give the secured party greater rights to the goods than others have.

Attaches

In legal parlance, attaches means to legally seize or take control of property, often in the context of securing a debt or executing a court order.

Equity Of Redemption

The right of a mortgagor to reclaim property by paying off the full amount of the mortgage plus any accrued interest and costs before foreclosure.

Home Equity Loan

A line of credit made available to homeowners based on the value of the property over and above any existing mortgages.