Module 2 – Application and Analysis: Direct and Indirect Costs in a Real-World Business

Objective: To enhance your understanding of direct and indirect costs and their impact on business decision-making, you are to analyze a real-world business scenario. This assignment will require you to identify and classify costs, and discuss how these costs influence business decisions.

Instructions:

Introduction:

Begin with a brief introduction that outlines the importance of understanding direct and indirect costs in business operations and decision-making.

Identify a Real-World Business:

Choose a real-world business or organization. This can be one you are familiar with, one from your research, or even a hypothetical scenario that you construct based on realistic business models.

Classification of Costs:

Identify and describe at least 3 direct costs and 3 indirect costs associated with the chosen business.

Analyze how the identification and management of these costs influence business decisions.

Consider aspects such as pricing, budgeting, cost control, and profitability.

Reflect on the importance of accurately classifying and managing direct and indirect costs in achieving business success.

Research and Resources: