Question

Imagine that your team is going to open its own manufacturing business, making
List and describe the costs that would be involved. There is no need to

provide quantities, costs, or other amounts. Just list the costs and describe them if and as necessary to clarify your plan:

•  Be sure to classify the costs correctly using information covered in this course.

•  Provide enough information about the cost to justify why your classification is

  correct.

•  List enough examples in each category to demonstrate the completeness of the

  production, selling, and administrative functions of your business. Note that this is a team project and no individual projects will be accepted.

  PRODUCT COSTS: Direct materials

  Direct labor

  Manufacturing Overhead

     

TYPE OF COST

DESCRIPTION OF COST This is optional. List any information necessary to clarify your cost.

FIXED?

VARIABLE?

                                                        

                             

PERIOD COSTS: Selling

Administrative

What sunk costs are relevant to your company? Why are these sunk? If none are relevant, why aren’t any sunk costs applicable to your business?

                                                   

What opportunity costs would you consider when deciding to open your business?

Answer 1