Costing P4

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1,000 words; may include some calculations embedded from Excel

 

 

Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product.

 

  • Develop a list of inputs along with their associated costs, such as labor, materials, and overhead. You can research this information, make it up, or do a combination of both. Be specific as to costs.
  • You are to determine the selling price. Show your calculations, and discuss why you have determined this to be a good sale price.
  • How many items of your product will you need to produce to meet this sale price? How did you calculate this?
  • Determine which of the costing systems discussed in this class will work best for your company. Explain why.
    • Explain why those not chosen were not a good fit for your company.
    • You must explain “why not chosen” for a minimum of 3 costing methods.
  • Please devote at least 1 paragraph to the ethical considerations of costing methods.

Assignment Guidelines:

  • Add a section to your paper, outlining how you would implement capital budgeting in your company.
  • Prepare an example of a decision that you would make using either the IRR or Payback method of analysis. Why would you use this for your business?

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