IDENTIFYING COSTS - Towel company -

List and describe the costs that would be involved. There is no need to provide quantities, costs, or other amounts. Just list the costs and describe them if and as necessary to clarify your plan. List enough examples in each category to demonstrate the completeness of the production, selling, and administrative functions of your business.

This is what I got so far for Towel company. Please help, what to add more?

Direct Materials

Warp (longitudinal thread used to make fabric)

Weft (latitudinal thread used to make fabric)

Chemical Dyes (I'm not certain if this should be classified as a direct or indirect material. All fabric needs to be bleached first so I included bleaching chemicals with indirect materials. The chemical dyes for coloring seem like they can be more easily traced to specific products)

Direct Labor

Warping and Sizing department workers, Salaries and wages

Weaving department workers, Salaries and wages

Dyeing and Printing department workers, Salaries and wages

Cutting, Sewing, and Packing department workers, Salaries and wages

Manufacturing Overhead

Rental cost of factory

Depreciation of factory equipment

Supervisor's salaries

Utilities for Factory (heat, water, power)

Indirect Materials (PVA starch, urea, wax, bleaching chemicals, sewing thread)

Insurance premiums for manufacturing facility

Period Costs - Selling

Advertising

Shipping costs

Cost of finished goods warehouse

Period Costs - Administrative

Rental cost of administrative offices

Executive salaries

General Accounting

Secretarial, Salaries and wages

Depreciation of office equipment

Insurance premiums

2. What sunk costs are relevant to your company? Why are these sunk? If none are relevant, why arent any sunk costs applicable to your business?

3. What opportunity costs would you consider when deciding to open your business?

Any insight or added information would be really helpful. I understand that only one question is allowed but this is all related and cant be posted separately. please help.

TYPE OF COST DESCRIPTION OF COST This is optional. List any information FIXED? VARIABLE? necessary to clarify your cost. PRODUCT COSTS: Direct materials Direct labor Manufacturing Overhead PERIOD COSTS: Selling Administrative