Reference no: EM133182682

Costs in the value chain at a real company and cost objects

Choose a company with which you are familiar that manufactures a product. In this activity, you will be making reasonable assumptions about the activities involved in the value chain for this product; companies do not typically publish information about their value chains..

Basic Discussion Questions

1. Describe the product that is being produced and the company that produces it.

2. Describe the six value chain business activities that this product would pass through from its inception to its ultimate delivery to the customer.

3. List at least three costs that would be incurred in each of the six business activities in the value chain.

4. Classify each cost you identified in the value chain as being either a product cost or a period cost. Explain your justification.

5. A cost object can be anything for which managers want a separate measurement of cost. List three different potential cost objects other than the product itself for the company you have selected.

6. List a direct cost and an indirect cost for each of the three different cost objects in question 5. Explain why each cost would be direct or indirect.