Again continuing with your business idea, develop a $$process costing$$ type problem relevant to your enterprise followed by a break$-$even analysis both in $$units$$ and $$sales$$ have fun! If a service based business be $$creative$$ in how you establish what$$s eligible for process costing :$)$

I am planning to open a furniture manufacturing business.

Product Costs:

Direct material: Wood, Foam, Cloth, Hardware$($Iron$,$ Spring$)$

Direct labor: Workers who use the wood, hardware, glue, lacquer, and other materials

Manufacturing Overhead:

Indirect materials: glue, screws, nails, sandpaper, stain, and lacquer

Indirect labor: factory supervisors

Other manufacturing costs: equipment maintenance, equipment depreciation, factory utilities, factory insurance, factory building depreciation, and factory property taxes

Period Costs:

$1.$Selling Costs: Advertising, sales commissions, salaries for marketing and advertising personnel, office space for marketing and advertising personnel, finished goods storage costs, and shipping costs paid by the seller for the customers.

$2.$Administrative Costs: Accounting, human resources, legal, executive, and information technology, Depreciation of office equipment and buildings.

Sunk Cost:

A sunk cost is a cost that an entity has incurred, and which it can no longer recover by any means.

The sunk costs which are relevant are:

Marketing : The amount spend on marketing study considered as sunk cost in case if study concludes that the business is not

Research and development: The development cost is a sunk cost if the market is indifferent, and buys no or less units than expected.

Opportunity Cost:

The cost of an alternative that must be forgone in order to pursue a certain action. Or The difference in return between a chosen investment and one that is necessarily passed up$.$

So in this case in place of opening a furniture manufacturing business, what best we can do is considered as opportunity cost.