Tour #1: Canadian Springs

Rating: ****

Company Overview: A supplier of bottled water and dispensers to homes, offices, etc.

Managerial Accounting Topic(s): service-oriented manufacturing; quality

Web Site: http://www.canadiansprings.com/

To Take the Tour: From the home page, first click on “About Us” then click on “Tour.”

Discussion Question: Chapter Two covers various cost terms, concepts, and classifications. From the plant tour of Canadian Springs Company identify one specific example of a Product Cost ( Manufacturing Inventoriable Cost), Period Cost (Non-Manufacturing Non-Inventoriable Cost), Direct Material Cost, Direct Labor Cost, Indirect Material Cost, Indirect Labor Cost, Manufacturing Overhead Cost, Fixed Cost and Variable cost. How does classifying costs in different ways help a manager make more informed decisions?