It’s important that managers understand how costs are reported on the company’s financial statements. Review the financial data for Anthony’s Orchards for the current year and compare the direct labor costs and direct materials to the previous year. Write a 1- to 2-page memo to senior management analyzing your findings and provide a recommendation for next year. What would you change based upon your analysis?To prepare for your memo, use data from the Anthony’s Orchards website and compare and contrast the direct labor costs and direct materials.Your memo should reflect the application of the material presented this week as well as anything from previous weeks and Required and/or Optional Resources.A description of your recommendation, a rationale for why it is important, and a description of the consequences of not following the recommendation should be included in the memo.
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