Cost Identification within the Manufacturing Process

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).