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Overview Successful entrepreneurs understand all aspects of business, especially costs and cos!ng systems. In the course project, you will assume the role of the owner of a small business and apply managerial accoun!ng principles to evaluate and manage costs related to your services within a cos!ng system. In the first milestone of the project, you will determine and classify the costs necessary for opening your business.
Scenario You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and size with plans to expand your range over the year. In a few weeks, you will present your company’s financial strategy to some key investors. To begin crea!ng your strategy, you need to consider and record all the costs associated with opera!ng your business. You have decided to use the job order cos!ng system.
Prompt Use the given opera!onal costs in the Milestone One Opera!onal Costs Data Appendix Word Document to complete the first two tabs, “Cost Classifica!on” and “Variable and Fixed Costs,” in the Project Workbook Spreadsheet.
Specifically, you must address the following rubric criteria:
Cost Classifica!on. Accurately classify all your costs in the “Cost Classifica!on” tab of your workbook. Iden!fy direct material, direct labor, overhead, and period costs. (Note: Fixed and variable costs have been classified for you.) Variable and Fixed Costs. Complete the “Variable and Fixed Costs” tab of your workbook.
(Note: Some costs are provided for you. Fill in only the missing costs.) Determine your total variable cost per unit and the total fixed costs for each product. Show your work using calcula!ons to the side of the table or using appropriate formulas in the table
