Description
WRITE – a minimum of 200 words addressing the following questions:
- Describe three issues/problems that a company could encounter when trying to determine the actual cost of a good or service to be used in the cost of goods sold. For each of your issues, provide an example of a company or industry where these issues could be present. WRITE – a minimum of 200 words addressing the following questions:
- We’ve all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, “Airline Industry Stock Outlook – July 2016 (Links to an external site.).” Identify three factors that are affecting airline company’s ability to break even. For each of your factors, discuss how these have an impact on the breakeven (contribution margin, fixed costs, variable costs, a combination, etc.), and what happens if these factors increase or decrease.
Explanation & Answer
Here you go....
Discussion 1
There are several problems that company might encounter when trying to determine the
actual cost of goods and services to be used in the cost of goods sold. These are material cost,
labor cost, and overhead cost. The first issue that company face is the material cost (Garrison,
Noreen, Brewer, & McGowan, 2010). Material cost is the cost that the company pays the price to
purchase the raw material for manufacturing the particular product, as raw material comes from
indirect materials, for example, sugar. We need to make Pepsi, and the amount which we pay for
the sugar is the material cost. The second issue is the cost of labor, as the labor cost is the cost
that ...
Review
Review
