Essay about Assignment 4 Analysis of Direct Costs

1241 Words5 Pages
Running head: ANALYSIS OF DIRECT COSTS Friday, August 22, 2014

Analysis of Direct Costs

Kristin Velix
Professor Bartillomo
Strayer University
Introduction
Developing and building a drone is one thing while developing a navigation system is completely another aspect. A drone can be considered a toy without a well-engineered design and functional navigation system. The navigation system is mainly used to give commands to the drone to undertake actions that are compatible with the development of the drone. With all the funds that are put into the development of the drones, the navigation system is developed in manner that cannot be prone to outside interference like hackers, terrorist or anyone that
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These employee’s include engineers, assistants, secretaries, drivers, human resources, trainers, marketers and accounting, all employees indirectly related to the production and sale of the product.
VectorCal’s navigation systems have two types of Material costs as well, direct materials and indirect materials. Materials or supplies are the basic elements that are transformed into the finished product through the use of labor and manufacturing overhead costs in the production process. The material costs can be direct or indirect materials are those that can be identified with the production of the finished product, which can be easily seen as part of the product and represents a significant cost of the finished product. Indirect materials are parts or supplies that are involved in the production process of the article, but not classified as direct materials. A good example would be nuts and bolts used in the production process, and as such are considered an indirect materials manufacturing cost.
A comparison of the direct and indirect cost that is associated with the navigation system within VectorCal and my company.
The main cost within the development of a navigation system for VectorCal’s or Remote Control Unlimited’s drone, will be in labor and material cost. The labor cost will mainly be used in the acquisition of highly trained and experienced programmers. The programmers will have to work in a team since the

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