Reference no: EM132741560

You are a consultant and need to explain to a newly opened manufacturing company the importance of allocating costs to a product. You will need to discuss direct cost, indirect cost, opportunity cost, and sunk cost to the plant manager.

Question 1: Define the cost.

Question 2: Give a real-life example.

Question 3: Explain why you chose that cost, including advantages and disadvantages in your answer for both.

Question 4: Explain opportunity and sunk costs by doing the following:

Question 5: Differentiate between opportunity and sunk costs.

Question 6: Define both opportunity and sunk cost.

Question 7: Give a real-life example of each.

Question 8: Explain why both are important to a company.