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Factory overhead affect responsibility accounting

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Bella, an accounting student, started her first day of apprenticeship. Bella will be working in the general accounting section but has been curious about management accounting so she asked Marcus, one of the cost accountant she met while in the lunch room, where in the organization are managerial accountants located. Marcus replied, "we are partner with all of the other functions in the business here." Bella was confused about Marcus' reply so she is asking you to explain to her what Marcus meant by it? Let Bella know what is the implication of that response?

What is the relevance of properly classifying costs, and how does the misclassification of raw materials, direct labor, and factory overhead affect responsibility accounting? Provide an example to support your answer.

Reference no: EM132818969

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