Case Study 2: Gringott’s

Case Study 2: Gringott’s (15 marks)
1. Draw a diagram to depict this process. Be sure to label all the relevant product categories, key points in the process, and related costs for each stage and output. Show your work. (5marks)
*you may draw and scan a photo of a diagram and paste it in your excel tab for this question*
2. With respect to Gornok’ssuggestion:
a. List and explain the costs that are relevant to Bogrod’s decision. If a cost is not relevant, explain why using simple terminology that Bogrod will understand. Remember, he has never taken a cost accounting course (or any course for that matter). (4marks)
b. Should Bogrod bring Galleon production in house? Support your answer with a balanced analysis of both quantitative and qualitative factors. (6marks)
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