Discuss method of calculating manufacturing cost for company


Assignment: Accounting For Decision Making

Choose a company that MANUFACTURES a product or products.

The company must be listed on a stock exchange, it may be domestic stock exchange, such as New York Stock Exchange (NYSE) or foreign stock exchange, such as Tokyo Stock Exchange (TSE). All companies listed on the stock exchanges are publicly traded and the information you will need can be found on the company's website. This includes but is not limited to financial reports, annual reports, and investor reports. Information may be found through other sources as well (such as 10-Q and 10-K reports for domestic companies). So please use all tools available to you.

NOTE: ONLY ONE STUDENT CAN WORK ON A GIVEN COMPANY AND THEREFORE REQUIRES THE APPROVAL OF YOUR PROFESSOR. APPROVAL WILL BE GRANTED ON A FIRST COME FIRST SERVE BASIS.

Once your selection has been approved, you will do the following:

1. Provide the name of the company and devote at least one page describing its (a) organizational structure, (b) the product or products manufactured, (c) their societal impact or ethical issues they have encountered, and (d) the markets it serves.

2. Identify the method of calculating manufacturing cost for the company.

3. Determine if the cost method the company has chosen is most appropriate and explain three reasons why the method is appropriate.

4. If you decide the cost method the company has chosen is not appropriate, write a recommendation as if you are sending it to the company for real and discuss three reasons to support your recommendation.

5. Suppose your selected company is planning to launch a new product. The target profit for this new product is roughly 1/12 the entire company's most recently reported annual profit (before taxes). The fixed cost for the new product is estimated to be about 40% of the most recently reported annual cost of goods sold. The contribution margin per unit is smaller by a factor of 20 of the new product's fixed cost. How many units must be sold for the new product line to breakeven? You must show ALL your assumptions and calculations.

6. This assignment needs to be 5 pages in total (cover page and reference page/s are not included in this count).

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.

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Accounting Basics: Discuss method of calculating manufacturing cost for company
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