Think about the different costing methods we have covered in this class. Which one is identified as the one you use for the “high-end, special-order type of manufactured product”. This is the costing method you should write in your paper about.
· 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.
Once you have your product, you need to think about what you need to put this together, Raw materials, direct labor, manufacturing overhead, etc. As it states above, you can research these costs or make up reasonable estimates.
· You are to determine the selling price. Show your calculations, and discuss why you have determined this to be a good sale price.
Think about the material covered in this class and how company’s use their cost of their products to develop there selling prices. Be sure to show your calculations.
· How many items of your product will you need to produce to meet this sale price? How did you calculate this?
Remember the materials and how fixed costs and mixed costs behave, they have an impact on the profitability of a product.
· 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.
Earlier you picked a specific costing method for your product. Now tell us why you chose that method and not the others. Explain why did not chose at least 3 other costing methods.
· Please devote at least 1 paragraph to the ethical considerations of costing methods.
Talk about the ethics related to assigning costs to products.