COST AND MANAGEMENT ACCOUNTING ASSIGNMENT -
QUESTION - You are the Chief Financial Officer for one of the following companies:
a) Clothing manufacturer
b) Plastic or glove manufacturer
c) Food manufacturer
d) Health and beauty product manufacturer
e) Electrical product manufacturer
f) Sports equipment manufacturer
g) Restaurant company
h) Education company
i) Banking company
j) Telecommunication company
k) Cleaning service company
l) Security company
Managing the company's numerous costs is critically important in this competitive industry. Therefore, one of the major tasks is deciding which costs to manage in order to achieve the company's profitability targets. In other words, you must identify the most important cost objects to track, measure and control.
REQUIRED
1) Explain the meaning of cost object.
2) Describe the general business activities of the company.
3) Identify 5 cost objects or activities that are critical to the company's success. A cost object is any item such as product, customer, department, project, geographical area, plant, course and so on.
4) Identify 20 possible cost related to any one of the cost object selected in number 3. Group the cost into the following category (choose only the category that is applicable to your company). Each possible cost can be grouped into more than one category.
a) Direct costs
b) Indirect costs
c) Variable cost
d) Fixed costs
5) Clearly explain why the cost objects or activities answered in number 3 are critical to the company's success.