MANAGERIAL ACCOUNTING
WRITING ASSIGNMENT #1

	Industrial Paints Inc. has engaged you to help the company analyze and
update its costing and pricing practices.  The company product line has 
changed over time from general paints to specialized marine coatings.  Although
some large orders are received, the majority of business is now generated
from products designed and produced in small lot sizes to meet specifically 
detailed environmental and technical requirements.
	The company has experienced tremendous support cost growth, including 
costs in customer service, production scheduling, inventory control, and 
laboratory work.  Manufacturing support has essentially doubled since the 
shift in product lines.  Management believes that large orders are being 
penalized and small orders are receiving favorable cost ( and therefore selling
price) treatment.

Write a memo to Evan Smith, the president, suggesting how it should change the 
cost accounting system to reflect the changes in the business.