Assignment: Analysis of Direct Costs
In order to complete this assignment, refer to the scenario from Assignment 1, as well as to the scenarios and readings.
Write a two to three page paper in which you:
1. Predict the main costs (e.g., labor cost, material cost) associated with the production of VectorCal's drone navigation system. Provide a rationale for the response.
2. Compare and contrast the direct and indirect costs associated with the drone navigation system that both your company and VectorCal would assume. Predict whether or not your company could easily control these costs and thus reduce production expenses. Justify the response.
3. Compare your company with VectorCal relative to the price of acquisition, semi-variable costs, and allocated direct and indirect costs of the drone navigation system. Justify the response.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
The specific course learning outcomes associated with this assignment are:
• Outline the process to forecast the likely price of an acquisition, calculate semi-variable costs, and allocate direct and indirect costs.
• Examine the various cost classifications, the different allocation bases, and the application of cost-accounting standards.
• Determine how to validate costs and certify cost and pricing data.
• Use technology and information resources to research issues in cost and price analysis.
• Write clearly and concisely about cost and price analysis using proper writing mechanics.