Question

You are required to come up with a business that is fit to apply JOB Costing on. That is each product/service/project is unique than the other in its using resources, labor, and other indirect manufacturing costs.

1. You have to give a name for your business.

2. You have to explain the products or services or projects that you provide for your customers.

3. Write the Mission Statement and Vision of your firm

. 4. Come up with at least three strategic and operational objectives.

5. Come up with your Cost Pools and identify appropriate allocation base(s).

6. Give 1 example of one of your products/services/project and apply Job Costing to it. That is, you have to identify how much Direct Material, Direct Labor; and Manufacturing Overhead cost is incurred.

7. Come up with your example’s (6) price to be sold to your customers.

8. Prepare 3-year Forecasted/Budgeted Income Statements, explaining the logic behind your numbers with respect to revenues and expenses as well as interest and tax.

Answer 1

Name of the business can be " Beauty beast decorators".

B. The services this company provides are:-

Positioning and organizing client's house furniture, adding accessories in the house, adding colors in the house etc.

C. Vision statement is:-

"Being the best decorators in the world by making a change in the life's of people".

Mission statement:-

"To provide best services and becoming a market leader in the decorating industry".

D. Operating objective can be:-

1. To utilize the resources in the best possible manner.

2. Providing best services at least cost.

3. To satisfy its employees.

Strategic objectives:-

A. To get an edge over its competitors.

B. To get economies of scale.

C. To capture maximum market share.