Classificationin costs entails the division of expenses incurred into different groups asdirect or indirect costs.
At Drones For You LLC, our prices are quite friendlywhen it comes to our navigation packages and services. We offer unique productsat a price the market cannot reach. The two types of costs: variable and fixedare coming among businesses. In my case, fixed costs are those that areconstant, those that do not change.
If it takes a certain amount to create onethen it will take that same amount to create the next one. This can be seen inthe electricity used in creating one drone. That never changes. These shouldalways be paid diligently and on time; they cannot afford any delay. With thestart up plan for Drones For You LLC already well set in motion, commencementof the company is to be ranged as a medium sized company offering drones toanyone needing our services. The market base is to be set in the United Statesmeaning better competing grounds and exposure for the company.
VariableCosts for Drones For You LLC.Variablecosts on the other hand those costs incurred varying depending on the levels ofproduction handled. They are those costs that either increase or decrease withthe increase or decrease of production. In the case of raw materials, moreproduction means the need for more should be met. With decrease in productioncome fewer raw materials.
A fixed variable example may be the packaging set up.More drones being assembled will mean larger spaces and more containers for thepackaging while lesser drones mean lesser spaces and packages required. Areasonable variable may be the usage of same or different quality of materialsfrom different sources in building the thrones. This will focus more on qualityof the drone. A supplier might have supplies such as cameras that the companyneeds at a certain price bidding with another who has the same quality at alesser price. It comes in in a situation like this that one has to use soundmind in decision making on what to take and what to leave behind.
An allowable variablecost is that that the company has given access to in the occurrence.Transportation comes in mind in such a case. If the company requires quick andsafe transportation, then they can subscribe to a transport package that suitsthem well.
A fixed variable cost applies to those that change in amount throughtime but cannot be avoided. Employees cannot go without pay; this is why theyare working in the first place. In due time labor laws might change or getaltered but at the end of it all labor should get paid. A semi- variable costinvolved a mixture of fixed and variable costs in terms of production. If samelevels of production are met consistently, then a fixed cost is met. If theproduction exceeds a certain limit, then a semi-variable cost is met to coverthat production. Methodsfor Providing Price Analysis for Drones For You LLC and VectorCal as expectedby the U.
S. government.TheCost Allocation Standard (CAS) would be a wonderful way for carrying out a thoroughand comprehensive price analysis.
The CAS 410 and CAS 418 can help bothcompanies calculate overhead costs for running the enterprise by calculatingall the constant and variable costs incurred by the business. The applicationof these two foams proves quite important at this moment. The CAS 408 as wellwould help in determining the employees’ share of cost incurred. This considerstheir wages; all those pending, means and ways of payment allocations, offeringleaves on holidays, military leave and so on. This helps in proper organizationof the variable cost to be prepared at all times.