Option #2: Cost Identification within the Manufacturing Process
Find the website for a beverage manufacturer/packager that describes the manufacturing process. Then use Microsoft Word to complete the following requirements:
Identify the company, its website and what it produces/packages.
BRIEFLY outline or flowchart the production process.
Define cost object and identify the cost object in the selected companyâ€s process. (There may be more than one but stick to one for this assignment.)
From the process outlined in step 2, identify and list 15-20 costs incurred in the process (e.g., maintenance on machinery).
Using the cost object identified in step 3, group the identified costs into the following categories: direct variable, direct fixed, indirect variable, or indirect fixed cost.
Conclude your assignment by explaining what each category of costs is used for in calculating the costs of goods manufactured.
In your analysis, include the following:
An introduction (#1),
Requirements # 2 – 5, and
Conclusion (#6).
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