Part 1. Accounting for the Cost of Software Programs at AdCom Games, questions A-C: A product costing system for Adventurous Computer Games, Inc. (AdCom) should take into account all the costs that are associated with each different game. This will ensure that all costs, both variable product costs as well as fixed costs are being covered. Beginning with the project team costs was a simple allocation, as these costs were already divided between the three different games. Next, the costs from the product development center needed to be allocated to each game; however, they did not keep track of these costs per product. The information that was provided gave some detailed information as to the number of hours the project team worked on each game, the number of lines of code that were written for each game by the product development center, and the cumulative pages of documentation provided for each game. I decided that to accurately distribute the product development costs to each of the games using lines of code as the activity would be the most relevant. Lines of code would provide an actual report of the actual work that was done on each game from the product development center. By taking the total development product center cost and dividing them by the total number of lines of code gave them a cost of $63.76 per line of code. Using this dollar amount I was able to allocate the product development costs to each different game. The other costs which include, manufacturing costs, sales and marketing, interest, and general administrative were costs that related to producing and selling the games. I felt that these costs also should be allocated to each product as these costs must also be covered by the profits that will be generated by games sold. In order to allocate these costs I used the hours that were recorded by the project team as they worked