Question:
You are a consultant and need to explain to a newly opened manufacturing company the importance of allocating costs to a product. You will need to discuss direct cost, indirect cost, opportunity cost, and sunk cost to the plant manager.
Which type of cost do you think is the most important to a company: direct or indirect cost?
Of your chosen cost (direct or indirect), answer the following:
Define the cost.
Give a real-life example.
Explain why you chose that cost, including advantages and disadvantages in your answer for both.
Explain opportunity and sunk costs by doing the following:
Differentiate between opportunity and sunk costs.
Define both opportunity and sunk cost.
Give a real-life example of each.
Explain why both are important to a company.
Primary Task Response: Within the Discussion Board area, write 400-600 words that respond to the following questions with your thoughts, ideas, and comments.
This will be the foundation for future discussions by your classmates.