Capital budgeting
MUST BE IN YOUR OWN WORDS
Deliverable Length: Word document of 1,000 words; may include some calculations embedded from Excel
Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product. Complete the following in a Word document of 1,000 words:
Develop a list of inputs along with their associated costs, such as labor, materials, and overhead. You can research this information, make it up, or do a combination of both. Be specific as to costs.You are to determine the selling price. Show your calculations, and discuss why you have determined this to be a good sale price.How many items of your product will you need to produce to meet this sale price? How did you calculate this?Determine which of the costing systems discussed in this class will work best for your company. Explain why.Explain why those not chosen were not a good fit for your company.You must explain “why not chosen” for a minimum of 3 costing methods.Please devote at least 1 paragraph to the ethical considerations of costing methods.Add a section to your paper, outlining how you would implement capital budgeting in your company.Prepare an example of a decision that you would make using either the IRR or Payback method of analysis. Why would you use this for your business?
