Dakota Office Products (DOP) are dealing with pricing and costing issues that are affecting the business. DOP uses the traditional costing method to determine the cost of the product. Furthermore, the traditional costing information is given to the customers. On the other hand, the management team believes that the company's existing cost accounting system has some serious flaws that need immediate attention to avoid making poor business decisions that are currently taking place within the enterprise. The first issue that DOP is dealing with is pricing its products to clients by marking up the sales price by 15% over and above the purchase price. The purpose of this strategy was to cover the expenses for the warehousing, distribution, and the
