Week 5 assignment: cost classifications and volume based costing

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Cost Classifications and Volume Based Costing

This assignment continues with your analysis of your company, Universal Drones, Inc., and their different types of costs. Being discussed are various cost classifications and volume based costs. You will finish this assignment by discussing different pricing methods that the government can consider.

In order to complete this assignment, refer to the scenario in the Introduction of New Drone Company Assignment where you discussed VectorCal and your company, as well as the scenarios and readings from previous weeks.

  • Refer to the rubric for this assignment to become familiar with how your paper will be graded.
  • Refer to scenarios and readings from previous weeks in order to complete this assignment.

You may use the Cost Classification and Volume Based Costing Assignment template [DOCX] to assist with formatting and completing the paper.

Write a 2–3 page paper in which you:

  1. Analysis of Universal Drones, Inc.’s Cost Classifications
    • Analyze and provide examples in detail of the following cost classifications for your company.
      • Reasonable costs.
      • Allowable costs.
      • Allocable costs.
  2. Analysis of volume based costs
    • Analyze and provide detailed examples of how the following costs change depending on volumes produced by Universal Drones, Inc.
      • Fixed costs.
      • Variable costs.
      • Semi-Variable costs.
  3. Pricing Analysis by the government
    • Assuming that a firm fixed price contract will be awarded, discuss the following pricing methods and indicate which one the government will probably choose. Also indicate how your company will ensure that the prices will be reasonable for the government. Remember to provide a rationale for each of these costs
      • Comparison of proposed prices.
      • Comparison of market based prices.
      • Comparison of prior proposed prices.
  4. Use at least three quality resources in this assignment. Note: Wikipedia and similar websites do not qualify as quality resources.