Governemnt Contract - Cost and Pricing

Assignment 4: Analysis of Direct Costs

Write a two to three (2-3) 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.

4. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.