Maxine Doc 315

Topics: Automotive navigation system, Salary, Cost Pages: 3 (856 words) Published: February 2, 2015
Discussion 1

"Classifications of Costs" Please respond to the following:
Diagram two to three (2-3) of the classifications for costs, and propose the value of each of these classifications in the production of the navigation system at VectorCal. Explain your decision for each classification chosen. Direct & Indirect Costs

Direct Costs = Costs that can be directly traced back to a cost object (Direct Materials + Direct Labor). Direct costs are valuable in the production of the navigation system at VectorCal, because it shows the company how much it is spending on a particular cost object. Indirect Costs = Costs that are not directly attributed to cost objects, such as overhead, general and administrative costs (i.e. depreciation, insurance, power, management salaries). Indirect costs are valuable in the production of the navigation system at VectorCal, because they identify potential areas where the company can cut back to save money. From first the e-Activity, compare and contrast the manner in which VectorCal and the other businesses that you researched utilize cost principles. Specify which cost principles you believe to be the most and least important for any business, and justify your rationale for each. For VectorCal as well as other companies, cost principles are used to price negotiated supply, service, research, and contract modifications for cost analysis. Additionally, most companies ensure that their cost is ordinary and necessary. All of the cost principles seem important to me, so I can determine a least important one.  

Discussion 2
Post #1
  Determine the differences between overhead costs and G & A costs in the production of VectorCal’s navigation systems overall. Analyze the role that each of these types of costs plays in the long-term production of VectorCal’s navigation systems. Justify your analysis. Overhead costs consists of all the company’s general operating expenses. General and administrative costs (G&A costs) cover...
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