Cost Systems and Cost Behavior

Accounting Cost Systems and Cost Behavior

You are applying for a managerial position at an innovative and  rapidly growing company. This is a dynamic company that wants an  individual who adds value to the organization. Managers at this company  wear many hats, so the position requires managing products, people, and  financial aspects of running the company.

As part of the interview process, you are required to make a  presentation covering four different topics, one per module for this  course.

You choose the company and the new product that you want to showcase  in your presentation. It can be real or fictitious (based on an  industry). This is for background purposes only. The presentation is to  showcase your abilities and what you can contribute to the organization.

IBIS World (access on the Portal through the Online Classroom & LibraryAdditional Library Resources link) and BizStats  have estimates of cost of goods sold and some other categories of  operating expenses. Information about contribution margins is not  available, but adding new products typically mean incurring both fixed  and variable costs. Consequently, cost of goods sold is a reasonable  estimate. Net operating income as a percentage of sales or some  variation thereof may also be relevant if the new product is expected to  contribute significantly to the bottom line. As a candidate for a  position you would not have internal information available, but being  resourceful and being a skilled researcher are desired traits for the  position. IBIS World also has a wealth of other market statistics that  may be helpful. Use listed background material and other resources as  needed.

Required:

Include the following items in your presentation.

  • Present an idea for a new product.
  • Describe the product.
  • Show some cost estimates and pricing suggestion for this product based on research.
  • What approach would you use to determine selling price (for example  cost plus or target costing)? It is important when choosing a design.
  • Explain your rationale for the pricing approach.
  • Show expectations of growth and potential profit.

SLP Assignment Expectations

Submit a PowerPoint presentation or a Word Document. A PowerPoint  presentation should have no more than six slides and a Word document  cannot exceed two pages. Use words, tables, and graphs to make a  succinct presentation. Document all sources and provide links at the  end. It is acceptable to add another slide or page to list the sources.