SNHU ACC 202 Managerial Accounting Cost Classification Paper


Successful entrepreneurs understand all aspects of business,
especially costs and costing systems. In the course project, you will
assume the role of the owner of a small business and apply managerial
accounting principles to evaluate and manage costs related to your
services within a costing system. In the first milestone of the project,
you will determine and classify the costs necessary for opening your


You plan to open a business manufacturing collars, leashes, and
harnesses for pets. To begin, you will manufacture these in a standard
style and size with plans to expand your range over the year. In a few
weeks, you will present your company’s financial strategy to some key
investors. To begin creating your strategy, you need to consider and
record all the costs associated with operating your business. You have
decided to use the job order costing system.


Use the given operational costs in the Milestone One Operational Costs Data Appendix Word Document to complete the first two tabs, “Cost Classification” and “Variable and Fixed Costs,” in the Project Workbook Spreadsheet.

Specifically, you must address the following rubric criteria:

  • Cost Classification. Accurately classify all your costs in the “Cost Classification” tab of your workbook.
    • Identify direct material, direct labor, overhead, and period costs.
      (Note: Fixed and variable costs have been classified for you.)
  • Variable and Fixed Costs. Complete the “Variable
    and Fixed Costs” tab of your workbook. (Note: Some costs are provided
    for you. Fill in only the missing costs.)

    • Determine your total variable cost per unit and the total fixed
      costs for each product. Show your work using calculations to the side of
      the table or using appropriate formulas in the table.

Guidelines for Submission

Submit the Project Workbook with the “Cost Classification” and “Fixed
and Variable Costs” tabs completed. This file should be completed and
submitted using Microsoft Excel.

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