Question

In: Accounting

Using your personal knowledge or the internet to select a product or service.  The product or...


Using your personal knowledge or the internet to select a product or service.  The product or service does not have to be an actual product or service – it can be completely fictional.  For the selected product or service, identify at least 5 costs involved with the product or service and complete the following questions.  


Classify each cost as direct or indirect. 

Identify the cost behavior as either variable, fixed or mixed. 

Provide a brief (2 or 3 sentences) on the relationship of these costs. 


Please note you will need to make some assumptions about the product or service.  Internal product information is generally not available to the public so you will need to make some educated guesses about what may be required.  

My product i would use is a (Hair Brush )

Solutions

Expert Solution

My product is Hair Brush Straightener.

Following are the major 5 cost involved with the product or service:

  1. Raw Material Cost - Raw material cost includes metal coil, plastic handle and rubber brustles. It is an direct variable cost which changes with the change in production. It is relevant cost for decision making process.
  2. Cost of acquiring and maintaining Plant & Machinery - Plant & Machineries are acquired to initiate the production process. It includes one time cost (fixed cost) of acquiring plants and machineries and annual cost of maintaining plant & machineries, for e.g. overhauling cost, annual maintainance charges etc. Hence, cost of acquiring and maintaining plant & machinery is a mixed cost.
  3. Rental income for land & building - Rental income for land & building is fixed cost. Also it is cost relating to time period rather than to the output of product/service. It is charged to expense in the period it is incurred. It is not included in the cost of goods sold.
  4. Sales Promotion expenses/ Cost of Advertisement - Sales Promotion or Advertisement expenses are associated with creating the awareness about the product to its legible customer. It is fixed cost. Also it is cost relating to time period rather than to the output of product/service. It is charged to expense in the period it is incurred. It is not included in the cost of goods sold.
  5. Product Development Costs - Product development costs includes market research cost, product feasibility study cost, etc. which are incurred before the product actually comes into existence. It is cost which do not change under given circumstances and donot play any role in decision making.

Related Solutions

Using your personal knowledge or the internet to select a product or service.  The product or...
Using your personal knowledge or the internet to select a product or service.  The product or service does not have to be an actual product or service – it can be completely fictional.  For the selected product or service, identify at least 5 costs involved with the product or service and complete the following questions.   Classify each cost as direct or indirect.  Identify the cost behavior as either variable, fixed or mixed.  Provide a brief (2 or 3 sentences) on...
Select a product or service that you are familiar with, such as jeans, computers, or personal...
Select a product or service that you are familiar with, such as jeans, computers, or personal MP3 players. Once these items are selected, then you must undertake research into the specific items : target market and market segmentation. Your answer must contain information as to: How large is the target market, what is the future growth potential of this target market, how do/does the marketer reach this target market and so on? Also, mention in your answer that how will...
Select a product you are familiar with. Based on your knowledge of the product life cycle,...
Select a product you are familiar with. Based on your knowledge of the product life cycle, what types of changes will occur to your selected product as it continues through the product life cycle? How will this affect the marketing of your selected product?
Select a product you are familiar with. Based on your knowledge of the product life cycle,...
Select a product you are familiar with. Based on your knowledge of the product life cycle, what types of changes will occur to your selected product as it continues through the product life cycle? How will this affect the marketing of your selected product? 
Select a product you are familiar with. Based on your knowledge of the product life cycle,...
Select a product you are familiar with. Based on your knowledge of the product life cycle, what types of changes will occur to your selected product as it continues through the product life cycle? How will this affect the marketing of your selected product?
Using the Internet or the Strayer databases, select a different company of your choice but this...
Using the Internet or the Strayer databases, select a different company of your choice but this time analyze the Statement of Cash Flows for that chosen company. Next, discuss the change in cash flows for the three (3) different categories of cash flows and identify the totals for each category and at least one (1) significant item in each. Be sure to interpret this information in terms of the long-term health of the company. Provide support for your response
Identify and research a service business in your pathway. Using the internet, go to the company’s...
Identify and research a service business in your pathway. Using the internet, go to the company’s website and obtain their most recent (less than 2 years old) Annual Report/10K. Write a three paragraph discussion post with the following information: Name of the company, in the subject line of your post. Why are you interested in this company? What industry are they in? What do they do specifically? What is the date of the most recent income statement presented, what was...
Using the resources at your campus or public library (or on the Internet), select 5 mutual...
Using the resources at your campus or public library (or on the Internet), select 5 mutual funds—a growth fund, an equity-income fund, an international (stock) fund, an index fund, and a high-yield corporate bond fund—that you think would make good investments. Briefly explain why you selected these funds. List the funds’ holding period returns for the past year and their annual compound rates of return for the past 3 years. (Use a schedule like the one in Table 12.2 to...
Select a product or service that you are going to use to create your marketing plan.
Select a product or service that you are going to use to create your marketing plan.
how od you manage your personal knowledge?
how od you manage your personal knowledge?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT