Memo #2 – Chapter 15
As the new managerial accountant, Mr. Profit does not understand the differences between Direct Materials, and Manufacturing Overhead. Explain these to Mr. Profit.
Write a word memo to explain the differences.
What types of Direct Materials would be used in this business?
What are examples of the Manufacturing Overhead for this business?
Give 2-3 examples of reporting and how it could be useful to approach the banker to get the loan approved?
