Video case: Three dog bakery: Understanding cost terms
Problem 1) To what cost objects could Three Dog Bakery trace its costs?
Problem 2) What sectors- manufacturing, merchandising, or service - does Three Dog Bakery operate in? Why are they classified this way?
Problem 3: When Wal-Mart purchased Lick'n Crunch cookies for sale in its stores, is the purchase considered a period of cost or an inventoriable cost? Why? What costs can Wal-Mart include as part of the purchase cost?