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Case Based Critical Thinking Questions
Carlos has developed a database for his organic farm.The farm sells organic produce and meat. In addition to the retail sales of his products, he offers cooking demonstrations five times each month for a small fee. The demonstrations are limited to 10 people. The database contains the following tables: Products, ProductPrices, ProductCosts, Suppliers, Customers, and CookingDemos. The Products, Product Prices, Product Costs and Suppliers tables are related using the ProductID field. The Customers and CookingDemos tables are related on the CustomerID field. Carlos needs to make some decisions using his database. Determine the best method for Carlos to use to achieve the results he wants.
-As Carlos plans for the fall planting season, he would like to bundle all of his shipments from the Organic Opportunities supplier into one shipment. He needs to know which products he has previously ordered from Organic Opportunities. Which method will quickly produce the results Carlos needs?
Direct Materials
Direct materials are raw materials that can be directly attributed to the production of specific goods or services.
Variable Overhead
Costs that change in proportion to the level of production or business activity, such as utilities or raw materials.
Variable Cost
Expenses that vary in direct proportion to changes in the level of production or sales volume.
Fixed Cost
Costs that remain constant in total amount with changes in the volume of activity, such as rent and salaries.
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