WEEK 7 DISCUSSION
“Indirect Costs” Please respond to the following:
• Predict VectorCal’s indirect costs based on the direct costs (e.g. direct labor, direct materials or both). Next, from the e-Activity provide two examples of companies with the same indirect costs that you predicted for VectorCal. Speculate on what the indirect costs of the existing companies bodes for the future of VectorCal.
• Suggest one way in which how VectorCal could estimate the future indirect costs for at least ten potential line items related to the production of its navigation systems. Determine two to three (2-3) line items that could affect the indirect costs the most. Justify your response.
“Direct Costs” Please respond to the following:
• Examine the methods that VectorCal could use for estimating the direct costs. Next, specify two to three (2-3) ways in which VectorCal could control these costs. Explain your rationale.
• Determine the manner in which VectorCal could estimate the future direct costs for at least ten potential line items related to the production of its navigation systems. Determine two to three (2-3) line items that could affect the direct costs the most. Justify your response.
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