Each participant is required to identify a product or service at your place of employment. Once identified, you need to try to determine the total cost of the product or service (e.g., per unit for a products and per hour for services). This means providing a general outline of the direct and indirect cost items as well as the manner and method of indirect cost allocation. In order to garner this information, you will need to identify and talk to/interview someone at your place of employment who can help you to understand how the product or service is currently being costed. If the information is proprietary, please feel free to modify the cost elements and amounts so as not to reveal any information that your employer is uncomfortable with sharing.

Once you have outlined the cost structure of your product or service you need to get together with the other members of your group and do the following: 1. Summarize the three cost structures into one document. 2. Identify and document the similarities and differences between the three costs structures making sure to address how the indirect costs are allocated across the three product or service offerings. 3. Critique the quality of the cost assessments. Do they capture the real cost of the products or services? 4. What information would you like to have that was not available at your company?

location - USA

department - HRIT / IT