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Question: This chapter's opener featured Jeff Avallon, John Goscha and Morgen Newman and their company Idea Paint.
Required: 1. How would a process cost summary differ between IdeaPaint and a competitor making dry-erase whiteboards?
2. How does not holding raw materials inventories reduce costs? If the items are not used in production, how can they impact profits? Explain.
3. Suppose Idea Paint decides to allow customers to make their own unique paint colors. Why might the company then use a process costing system?
This discussion surrounds an example of how one industry used statistics to make important analytics decisions about how it best served its customers.
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