Given:

A shoe manufacturing company is having a problem with returns and customer complaints in their boot division. Top executives are meeting to figure out what these problems in the boot division are costing the company.

A. Problem statement:
Our Boot department is having trouble with product returns and customer complaints. The firm may revamp the product raw materials and assess if it is due to quality or equipment issues. Also data will be collected and analysis on the most common complaints to reduce /eliminate the problem. Also explore if additional training and/or hire/replace some employees for assistance with the consumers complaints.

B. 6 types of cost
Management Cost- Cost management is the process by which companies control and plan the costs of doing business. This can be translated as reducing costs of production for products or services, in addition to improving value being delivered to the customer.
Manufacturing cost - Manufacturing costs flow through three basic responsibility centers: the raw materials storeroom, the factory, and the finished goods storeroom. These inventory accounts are usually provided to accumulate costs as they relate to the three responsibility centers: raw material inventory, work-in-process inventory, and finished goods inventory. When goods are sold, costs are transferred from the finished goods inventory account to the cost of goods sold account. The flow of costs through the manufacturing process

Utility cost - The cost of usage of utilities such as lighting, water, and heat.
Labor cost – training, hours worked, health benefits etc
Material cost- The amount of money invested in the production of a product. Likethe parts of a machine would be things that incur material cost

Production cost- The costs related to making or acquiringgoods and services that directly generates revenue for a