Suppose you are researching how to start a business and are learning about the costs.

1. To learn more about cost, you decide to research and select 2 (two) companies, one that uses job order costing and another that uses process costing. For each of the two types of companies you selected from above, provide an example of each of the following costs the companies might incur. Fully explain your examples.

a. Direct material, make a list of possible materials used with respective costs. b. Direct labor cost. c. Manufacturing overhead cost with details. d. Selling and administrative detailed expenses. Be sure to explain and support your answers.

2. Suppose you have decided to start a business producing and selling a product of your choice. Answer the following questions related to your product:

a. Briefly describe the product you would produce and sell. What specific market will you target this product for? Why would the target market buy this product? b. Make a detailed list of the materials needed (with individual costs) to make your product. How much in materials will you need for the year? c. Make a list of expenses you would incur in your business venture. Examples include rent, utilities, insurance, direct labor, manufacturing overhead costs, and so on. Estimate the cost of each of these expenses per year. d. Based on your cost analysis, at what price would you sell your product? e. Calculate how many units of your product you would need to sell to break even. Show your work. Why do you believe that this venture's target profit is achievable? Explain.

3. Find resources that confirm the importance of budgeting to organizations and answer the question below. Using your work experience think about how budgets can influence the choices made by top leaders and impact a business's long-term plans, especially in rapidly changing industries.

a. Provide one specific example or share a real-life story about a company facing difficulties because its budgeting practices didn't go as planned. b. Describe a minimum of two ways in which a personal budget is similar to a business budget. Elaborate your response.