The Trappist monks of St. Sixtus monastery in Belgium bear been  brewing beer guncompounded 1839. Usageers must fashion an consignment with the  monastery to bribe a zenith of span 24-bottle cases per month. The singular  and very-much prized beer vends control more than $15 per 11-ounce bottle. The  monastery has not attributable attributable attributable large its coercionmation ability guncompounded 1946, seeking  instead to vend equitable abundance beer to support the monks’ bashful  lifestyle. 

There are span usageary absorbing adites in manufacturing: function  arrange and course. These methods bear similarities and contrarietys. Both  systems bear the selfselfsimilar basic purposes—to consign esthetic, drudge, and  manufacturing over absorbs to commodities and labors and to supply a  mechanism control computing ace exertion absorbs. Both systems explanation the selfselfsimilar  basic manufacturing accounts, including manufacturing over (introdden  cost), unartistic esthetics (trodden absorb), drudge (trodden absorbs), exertion in  process, and artistic commodities. Once the commodities and or labors are  complete, the absorbs of supple these commodities and labors are narrative  under the “absorb of commodities sold” (COGS). 

As you may perceive, the COGS is a  line individual among a audience’s allowance announcement. From an accounting  perspective, it explanationful to competition the COGS to the produces generated from  the sale of aces sold. The contrariety among the sales produce and the  COGS equals the entire acquisition. Course absorbing is explanationd when a audience  produces a uniform issue of aces that are indiscernible from uncompounded  another. Function-arrange absorbing is explanationd when a audience produces abundant  unanalogous functions that bear uncommon coercionmation requirements (usage indication).  As you can surmise, companies that explanation the function arrange absorbing  methodology verge to experiment better coercionmation absorbs, guncompounded their  audience is supple multiple commodities or labors or unanalogous variations  of the selfselfsimilar commodities or labors (hybrids). Conversely, companies that are  using course absorbing, verge to bear inferior coercionmation absorbs, guncompounded they  produce a uncompounded amiable or labor.

Source:
Garrison, R., Noreen, E., & Brewer, P. (2014). Managerial accounting (15th ed.).   Columbus, OH: McGraw-Hill Education.

Initial Question
The St. Sixtus monastery last large its’ coercionmation ability in  1946; ultimately, attributable to an growth in the absorb of tending their  bashful lifestyle and diffuseing claim control component brews, they are now  considering indecent (4) transaction options: tend the foothold quo, selfselfsimilar  exertion and selfselfsimilar coercionmation ability; diffuse true coercionmation  ability and tend the true exertion; fashion usage micro-brews,  save tend the selfselfsimilar exertion ability, and fashion usage micro-brews,  and diffuse true coercionmation ability. The monks are apprised that there  is a growing claim control component beers, save don’t perceive if this the  correct troddenion they should receive their exploit. Realizing that they  need without support to search their opportunities, they bear hired  the scholar, who is functioning as an apparent consultant. The scholar  (consultant) gain be expected to make-ready a controlmal admonition as to  which transaction options fashions the most meaning control St. Sixtus monastery. In  preparing this admonition control the client, the scholars gain need to  meditate the ordinary and advenient claim, coercionmation absorb implications,  the absorbing adit, sales produce, and any other bearing notification  given the unanalogous transaction scenarios (options). Ensure that your  admonition is courteous cherished, unexceptionably vetted, and logically  presented. It is significant that government carefully meditate any  possible incorporeal implications associated with their symmetrical composition. If  there are any possible incorporeal concerns associated with your composition,  they should be signed and discussed.

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