Suppose that you are preparing for the second interview with the manufacturing company. Company is impressed with your credentials but has indicated that it has many other qualified applicants. You anticipate that in this second interview, you should show what you offer over other candidates. You learn the company presently uses the periodic inventory system and is not satisfied with timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items. To show your abilities, you plan to recommend that it use a cost accounting system.
Instructions: In preparation for the interview, prepare the memo to CFO of the company outlining the following:
1) Your cost accounting system recommendation and why it is appropriate for this company.
2) A general description of the documents that proposed cost accounting system requires.
3) How the documents in part 2 facilitate operation of the cost accounting system.