Cost Identification within the Manufacturing Process

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Option #2: Cost Identification within the Manufacturing Process

Find the website for a beverage manufacturer/packager that describes the manufacturing process. Then use Microsoft Word to complete the following requirements:

  • Identify the company, its website and what it produces/packages.
  • BRIEFLY outline or flowchart the production process.
  • Define cost object and identify the cost object in the selected company’s process. (There may be more than one but stick to one for this assignment.)
  • From the process outlined in step 2, identify and list 15-20 costs incurred in the process (e.g., maintenance on machinery).
  • Using the cost object identified in step 3, group the identified costs into the following categories: direct variable, direct fixed, indirect variable, or indirect fixed cost.
  • Conclude your assignment by explaining what each category of costs is used for in calculating the costs of goods manufactured.

In your analysis, include the following:

  1. An introduction (#1),
  2. Requirements # 2 – 5, and
  3. Conclusion (#6).
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