Assignment 3: Analysis of Direct Costs

1.      Predict the main costs associated with the production of Vector Cal’s drone navigation system. Provide a rationale for the response.

2.      Compare and contrast the direct and indirect costs associated with the drone navigation system that both your company and VectorCal would assume. Predict whether or not your company could easily control these costs and thus reduce production expenses. Justify the response.

3.      Compare your company with VectorCal relative to the price of the acquisition, semi-variable costs, and allocated direct and indirect costs of the drone navigation system. Justify the response.