Acc 202 Milestone One Guidelines And Rubric Overview

Acc 202 Milestone One Guidelines And Rubric Overview In The First

In the first milestone of your final project, you will determine and classify the costs necessary for opening your business. This is a critical step that must be done correctly for you to successfully complete the subsequent milestones and the final submission. You will plan to open a pet-services business offering dog grooming, day care, and boarding. You can choose the name of your business, its geographical location, and its mission and vision to add value to the community. Your business will have facilities including kennels, grooming, day care, and boarding areas, with specific capacities and sizes. Staffing needs, costs, and equipment such as grooming tools, fencing, kennels, and flooring are detailed, along with recurring costs like rent, utilities, food, and cleaning supplies. You are expected to complete three key tasks in your workbook: define your company's profile, classify all costs into appropriate categories, and calculate your per-unit cost per dog.

Paper For Above instruction

Company Profile:

For the pet-services business, I will establish "Paws & Relax," located in Dallas, Texas. The mission of Paws & Relax is to provide high-quality grooming, daycare, and boarding services that enhance the well-being of pets and peace of mind for their owners. The vision is to become the trusted neighborhood pet care provider by offering compassionate, professional, and affordable services that add value to the local community.

Cost Classification:

To classify all costs involved in the business, I categorized them into direct materials, direct labor, manufacturing overhead, and period costs, further delineated as fixed or variable:

• Direct Materials: Bowls, towels, grooming scissors, shampoo, toys, cleaning products, grooming arm, tub, and clippers.
• Direct Labor: Wages paid to groomer, day care attendant, receptionist, and kennel attendant, based on hours worked and wage rates.
• Manufacturing Overhead: Depreciation on kennels, heating system, grooming supplies, fencing, and flooring; rent; utilities and insurance; grooming table; cage bank; dryer; and grooming tools could be considered overhead due to their indirect role in service delivery.
• Period Costs: Administrative salaries, advertising, and other miscellaneous expenses incurred regardless of production volume.

Cost Classification Summary

Per-Unit Cost Calculation

In calculating the per-unit cost per dog for each service, I considered the monthly capacity and operational days:

• Grooming: The groomer grooms 5 dogs/day, working 5 days/week, totaling 25 dogs/week or approximately 100 dogs/month. The annualized labor cost is $12/hour 40 hours/week 4 weeks = $1,920/month, thus a per-groom labor cost of $1,920 / (25 dogs/week * 4 weeks) = $19.20 per groom. Variable costs include grooming supplies; for example, shampoo and scissors, which are used across multiple grooms. Fixed costs, such as the grooming tub and tools, are allocated proportionally based on usage.
• Day Care: Capacity is 10 large and 12 small dogs daily. Assuming 6 days/week and 25 days/month, total capacity is 2700 dog-days/month. The attendant wages are calculated at $9/hour for 22 days/month, totaling $198/month. Variable costs include bowls, towels, toys, and cleaning supplies, apportioned per dog based on their expected usage.
• Boarding: The 12 kennels house one dog each, operational daily. Monthly costs include depreciation ($80), rent ($650 proportionally based on square footage), utilities, and feeding supplies. The per-dog monthly cost is derived by dividing total monthly fixed costs by the number of dogs boarded in a month.

By summing the variable costs and allocating fixed costs over expected volume, the detailed per-unit costs are calculated to aid in pricing and profitability analysis.

Conclusion

This comprehensive classification and calculation process provides a clear financial foundation for opening and operating the pet-services business. Accurate cost classification ensures proper tracking of costs related to each service and facilitates informed managerial decision-making. Understanding the per-unit costs enables setting competitive prices and achieving financial sustainability while maintaining high-quality pet care services in Dallas, Texas.

References

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