Question

Discussion: you will assume the role of an entrepreneur. Youwill create a fictional organization and consider some costingconcepts as you create it.

First, compose a full paragraph that describes the organization.Be sure to include the name of your company, the product (orproducts) or services that it provides, and who your intendedcustomer base would be. Think strategically about what you canoffer that a customer base would see as valuable, and what basicbusiness model would help you to be most profitable.

1.Once you have outlined the company and its goals, pleaseconsider and answer the following questions:

2.Identify at least one fixed and one variable cost you willhave in producing your product(s) or service(s).

3.Identify at least one potential sunk cost.

4.Identify a potential relevant cost decision you would have tomake and explain which aspects of the decision might be relevantand which ones would not be relevant.

5. Explain how opportunity costs could apply to one or more ofyour products and/or services.

6. Identify at least one outsourcing decision in which you would“buy” and at least one outsourcing decision in which you would“make." Keep in mind these can be not only production issues butissues related to how your business is structured. Explain theanalysis you would use in arriving at an item you would “buy” andthe analysis you would use in arriving at an item you would“make.”

Your initial posting should be between 300 to 400 words and usea minimum of three sources (one of which may be the textbook). Citeyour sources and references using APA format (a tutorial isprovided in the Class Tutorials Section of the course).

You will use two items to complete Part II. First, go back andreview the company that you created for the Discussion. Thinkstrategically about the company, its products and services, andissues related to cost. Then, review the case study on Boeing(http://web.mit.edu/ctpid/lara/pdfs/abccasestudy.pdf) to understandhow activity-based costing and activity-based management can impactmanagerial decisions within firms. Once you have completed thesetwo activities, respond to the following questions in the spaceprovided below. You should use source materials, citations ANDreferences (in APA format) to help support your answers. Generally,3-5 sources (or more) should be used. Remember to double space youranswers as well.

Topic A (10 points) – Using the company you created in Module 2,if you were to conduct an ABCM pilot in the organization, thenwhich stakeholders would be most likely to support the project?Which stakeholders would find the project threatening orproblematic? Why?

Answer:

Topic B (10 points) – Do you believe that make-buy decisionswould be better, worse, or no different with an ABCM system inplace? Why do you reach this conclusion?

Answer:

Topic C (10 points) – Do you believe that continuous improvementefforts would be strengthened by such a system? Why or why not?

Answer:

Topic D (10 points) – Do you have enough evidence here to decidewhether you would support or oppose an ABCM initiative within yourcompany? If so, then explain. If not, then what additional data orinformation would you need?

Answer:

References: (10 points)