Running head: ANALYSIS OF DIRECT COSTS Friday, August 22, 2014
Analysis of Direct Costs
Kristin Velix
Professor Bartillomo
Strayer University
Introduction
Developing and building a drone is one thing while developing a navigation system is completely another aspect. A drone can be considered a toy without a well-engineered design and functional navigation system. The navigation system is mainly used to give commands to the drone to undertake actions that are compatible with the development of the drone. With all the funds that are put into the development of the drones, the navigation system is developed in manner that cannot be prone to outside interference like hackers, terrorist or anyone that
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These employee’s include engineers, assistants, secretaries, drivers, human resources, trainers, marketers and accounting, all employees indirectly related to the production and sale of the product.
VectorCal’s navigation systems have two types of Material costs as well, direct materials and indirect materials. Materials or supplies are the basic elements that are transformed into the finished product through the use of labor and manufacturing overhead costs in the production process. The material costs can be direct or indirect materials are those that can be identified with the production of the finished product, which can be easily seen as part of the product and represents a significant cost of the finished product. Indirect materials are parts or supplies that are involved in the production process of the article, but not classified as direct materials. A good example would be nuts and bolts used in the production process, and as such are considered an indirect materials manufacturing cost.
A comparison of the direct and indirect cost that is associated with the navigation system within VectorCal and my company.
The main cost within the development of a navigation system for VectorCal’s or Remote Control Unlimited’s drone, will be in labor and material cost. The labor cost will mainly be used in the acquisition of highly trained and experienced programmers. The programmers will have to work in a team since the
Indirect costs represent overhead costs such as supervision, administration, consultants, and interest, and cannot be associated with any particular work package or activity. These costs vary directly with time, thus any reduction in time results in a reduction of indirect costs (Gray & Larson, 2007, p. 288). For instance, the use of the old vessel will cost $4,000 a week. Based on normal estimates, the old vessel will be used during 15 weeks, which represents $60,000. Afterwards, the use of the new vessel will cost $6,000 a week. Again, based on the normal estimates, it will cost Ericksen 's team $150,000 for a 25-week period. According to the crash schedule, a reduction in the amount of time spent using the old vessel brings the indirect costs to $48,000, and a reduction in the use of the new vessel represents a savings of $24,000. Because indirect costs represent a significant percentage of total project costs, reductions in project time represents very real savings.
Brewer, C. P., Garrison, H., R., & Noreen, W., E., (2005). Introduction to Managerial Accounting, 2nd Edition. New York, NY: McGraw-Hill/Irwin.
After Glaser management has identified the handful of the activities that connect overhead expenses to products, they must use the appropriate measure (the cost driver) to tie the overhead expenses to the product lines or service lines. To achieve this management must specify an appropriate cost driver for tracing costs associated with the various levels of activities to the next cost objective or products. The cost drivers can include a number of things such as direct labor hours, number of batches, or number of employees. (Appendix C shows the appropriate cost driver with the various levels of activities).
There are several different ways to control the use of a drone. First, drones can be controlled with the use of a remote control and also they can be use by other technology. Also, a drone can
The navigation systems that both VectorCal and my new company produce are needed to reduce if they are combined produce goods that is disadvantage of the BAA requirements. On the basis of the BAA requirement related to the navigation system needed that the both VectorCal and my new company should reduce produce if they are combined to come up with one navigation system that requirement impacts on the performance of both companies. In generally, if both VectorCal and my new company will work as a single company then they faced disadvantage of the BAA requirements (Dodaro, 2011). Moreover, if both VectorCal and my new company will perform as a single firm then the probability of win tenders or government supply goods orders will also be decreased. This situation indicates that the BAA requirements with the navigation system can be disadvantages to both firms if they perform as a single
This paper intends to discuss a proposal on analysis of cost and price. The proposal describes a company known as Hi-delta which is a new start company which targets the industry of drone navigation systems.
With the included GPS navigation technology, the drone can be piloted with ease, allowing for auto take off and auto return home. Additional apps for the monitoring device and camera control can be downloaded. Furthermore, capability to edit, add music, and text can be utilized by downloading DJI software with built-in video editor.
Drones are used to deliver packages, used in the military, for racing, wildlife research, and for fun. For military they use the RQ-9 Reaper. The first military drone flew along pre-set paths the plane was called Global Hawk that costed 104 million dollars. To define it as a drone is to see if it flies and it’s controlled by a pilot on the ground, it fits under the everyday language definition of drone.
Drones, an unmanned aircraft or ship that can be controlled by an onboard computer or remote. A technology that has great advancements in recent years, though drones are nothing new. The first official “drone” dates to France in 1782 with the Montgolfier Brothers; they sent unmanned balloons out prior to testing with individuals on board. While nothing like modern drones, this is the first example of an unmanned vehicle. Fast-forward in time to 1860, Nikola Tesla had developed a radio-controlled boat, the first remote controlled vehicle.
To answer the question we must first define a drone. A drone is a pilot less aircraft
Simply put, a drone is a relatively small aircraft piloted by computers or a remote control. They have started from being used in military operations to having it for commercial use.
The current cost system is based on two components: a direct and indirect cost measurement.
Under the new cost system, two broad sources of costs were identified: manufacturing and SM&A. All costs within these categories were reclassified as either volume driven or order driven. Hence, four cost pools were set up.
In this assignment I will be discussing how costs incurred in any organization may be classified in a number of different ways for a number of different purposes. I will also be looking to find companies that use a variety of different costing techniques and methods. I will also be discussing the comparisons between marginal and absorption costing and how the concept of activity based costing can also be compared with these. To complete the assignment I will be using a combination of lectures notes, text books and the internet to research the various ways of cost classification, and how different companies use these, to enable me
Drone technology is advancing rapidly and it is changing the way in which things are being done. Drones are widely used by many people as a hobby or for career purposes, as well as for military purposes by the United States. Drones provide the U.S military with many benefits, which helps the military to operate efficiently and in a safe manner. Businesses are utilizing this technology as well in order to make their companies run more efficiently, as well as to improve their customer service. Drone technology will positively impact our society; drastically change our culture and political system and definitely advance our economy as well as help enhance our environment.