Identification of a Manufacturing Company’s Costs
Gateway, Inc., and Dell Computer Corporation assemble computers and sell them over the telephone or the Internet. Access the website of either of these companies. Become familiar with the products of the company you have chosen. For one of these products, such as a desktop or laptop computer, give examples of a direct and an indirect cost, a variable and a fixed cost, a value adding and a no value-adding cost, and a product and a period cost. Also give examples of the three elements of product cost: direct materials, direct labor, and overhead.