Question

Select a public (i.e. one that publishes its financial information) manufacturing company and become familiar with its products. Describe the company, its products, and the specific manufacturing costs it incurs. Categorize each cost into the three manufacturing cost categories and state if the costs are variable, fixed, or mixed. Explain how you came to your conclusions.

Answer 1

Answer & Explanation: Nigerian Breweries Plc is a pioneer and largest brewing company in Nigeria. She is the manufacturing of brands including; Star lager, Gulder lager beer, Legend Extra stout, Heineken lager, Breezer, Maltina etc.

The manufacturing cost of Nigerian Breweries include; raw materials (variable cost); salaries and wages of factory workers (mixed cost); factory-related insurance (fixed cost) etc.

Fixed cost refers to costs that remains unchanged given the level of production while variable cost varies with the level of production.