Price Analysis for Navigation System



Price Analysis for Navigation System

Cost classification of the Navigation System

The cost of the navigation system is classified below as per the common traits. The cost associated to a business or company's operations can be classified in several ways such as element, nature, function, behavior, capabilities, time, or decision making wise. The cost of the drone navigation system is listed below in tabular form:

Factors of cost

Amount

Cost of base

$2500

Cost of hardware

$30000

Cost associated to online technical support

$1000

Introductory training cost

$3000

Total cost

$36500

The cost as mentioned above in the tabular form represents the basic cost associated to the manufacturing and operating of the drone navigation system within the company. However, the company also incurs other types of cost that include salaries and wages of hiring expert and new professionals. These professionals must be skillful and highly competent to produce the best outcomes at work. The nature of work demands company to hire system engineers, software engineers, software architect, and other technology experts to design the system. The salaries and wages of the professionals are listed below in the tabular form:

Job designations

Amount of average salary

System Engineer

$75000 per year / $36.05 per hour

Software engineer

$70000 per year / $33.65 per hour

Software architect

$85000 per year / $40.86 per hour

(Caglar, 2008, pp. 40-43)

These salaries are retrieved from www,careerbuilder.com and www.dice.com.The costs as listed above are expressed by behavior. The behavioral expression of cost is used to classify the cost associated to the business into fixed, variable and semi variable form. The fixed cost remains same throughout the given time period regardless of alterations in the volume of production. The variable cost can vary or change as the volume of production changes in the given period of time. On the other hand, semi variable cost is a combination of fixed and variable nature of cost (Horngren, 2009, pp. ...