Accounting 206 week 3

Part 1

WRITE – a minimum of 200 words addressing the following questions:

• Describe three issues/problems that a company could encounter when trying to determine the actual cost of a good or service to be used in the cost of goods sold. For each of your issues, provide an example of a company or industry where these issues could be present.

Part 2

WRITE – a minimum of 200 words addressing the following questions:

• Weâ€ve all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, “Airline Industry Stock Outlook – August 2012.” Identify three factors that are affecting airline companyâ€s ability to break even. For each of your factors, discuss how these have an impact on the breakeven (contribution margin, fixed costs, variable costs, a combination, etc.), and what happens if these factors increase or decrease.