Assignment task:
A few of the lists of costs that are used in our day-to-day business experience that affect managerial decisions regularly are direct materials, indirect materials, direct labor, indirect labor, manufacturing overhead, selling cost, administrative costs, and product cost. Direct materials, direct labor, and product costs are fixed. Indirect materials, indirect labors, manufacturing overhead, selling costs, and administrative costs are variable since all these costs are not traceable until the product is done and manufactured completely.
An example of a managerial decision that was affected by some of these costs is to stop production because of the raw material shortage. A good example was during the pandemic, our company was affected by a lot of material shortages because some of our suppliers were shutting down due to not having enough people to work on building our raw materials. We come to work but we sit and wait for parts to come in, because of raw material shortages, we couldn't work around the assemblies we build. The company is paying us overtime if materials come in during our regular day off, and we had to come in and build our assemblies to complete our products to make it to our shipping cut-off date
What would be a good response to the above?