Assignment 2: Price Analysis for the Navigation System

In order to complete this assignment, refer to the scenario from Assignment 1, as well as to the scenarios and readings from previous weeks.

Write a two to three (2-3) page paper in which you:

1. Analyze your company’s cost classification for pricing of the navigation system. Defend your cost classification to the US government.
2. Determine reasonable, allowable, allocable, variable, fixed & semi-variable costs for your company after the initial startup phase is complete.
3. Predict the method for performing price analysis that the US government will want from your new company and VectorCal. Justify your response.
4. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

• Examine the various cost classifications, the different allocation bases, and the application of cost-accounting standards.
• 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.

Click here to view the grading rubric.