Question: You will assume the role of an entrepreneur. You will create a fictional organization and consider some costing concepts as you create it.
First, compose a full paragraph that describes the organization. Be sure to include the name of your company, the product (or products) or services that it provides, and who your intended customer base would be. Think strategically about what you can offer that a customer base would see as valuable, and what basic business model would help you to be most profitable.
Once you have outlined the company and its goals, please consider and answer the following questions:
1. Identify at least one fixed and one variable cost you will have in producing your product(s) or service(s). Explain the rationale you have for naming one as fixed and one as variable.
2. Identify at least one potential sunk cost. Explain how and why that cost might be classified as sunk.
3. Identify a potential relevant cost decision you would have to make and explain what parts of the decision might be relevant and which ones would not be relevant.
4. Explain how opportunity cost could apply to one or more of your products and/or services. Provide an example of opportunity cost for your company and its product or service line.
5. Identify at least one outsourcing decision in which you would "buy" and at least one outsourcing decision in which you would "make." Keep in mind these can be not only production issues, but issues related to how your business is structured. Explain the analysis you would use in arriving at an item you would "buy" and the analysis you would use in arriving at an item you would "make."
It should be between 300 - 400 words and use a minimum of three sources Cite sources and references using APA format.