Choose a company that manufactures a specific product. Then, answer the following questions based on assumptions and research conducted about the company and its product.
Describe the product that is being made and the company that makes it.
Explain the value chain activities that this product would go through from start to finish. Remember that a value chain describes the full range of activities necessary to create a product or service.
List and explain three costs that would be incurred in each of the business activities in the value chain.
Categorize and explain each cost you identified in the value chain as either a product cost or a period cost. Explain your reasoning.
Make a list of three different cost objects other than the product itself for the company you chose.
Specify a direct cost and an indirect cost for each of the three different cost objects in question. Discuss why you categorized them as direct or indirect.
Answer & Explanation
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