You are a consultant for Sweet Bites Cakes (attached). Prepare and provide a proposal recommending which type of costing approach will help the company determine more accurate cost information for pricing and product decisions.
Address the following:
What information does Sweet Bites Cakes need? Based on the case information, discuss the types of cost information the company’s product costing system should be able to provide.
From the table, determine which costs should be treated as product costs and which should be treated as period costs for management decision-making.
For each product cost you identify, how would you track the cost?
For each specific cost item, you listed in Question 3, how would you assign that cost to products to attain reasonably accurate product costs?
