Detai Submission Grade CH9 Project Budgeting - DUE 3/18 Due: Mar 18, 2018 at 11:

Question

Detai Submission Grade CH9 Project Budgeting - DUE 3/18 Due: Mar 18, 2018 at 11:59 PM A baker has a contract to bake three dozen chocolate chip cookies for a customer's party. Create a bottom-up estimate that includes both items needed for the project and the cost (both direct and indirect) According to your estimate, how much should the baker charge for the cookies and do you believe this is a reasonable price why/why not? Don't over-engineer this assignment, simply demonstrate you understand the concept of bottom-up budgeting and direct vs. indirect costs. Points 10

Explanation / Answer

Here the direct cost includes the manufacturing cost of the chocolate. It includes acquiring the material and employing the technology and labor to prepare the product. Usually chocolate manufacturing requires huge amount of money inters of manufacturing cost, these are the direct costs involves in this context. Indirect costs are after manufactured the chocolates, they have to be delivered to the customer for that it may occur transportation cost and labor charges.

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