The cost of the navigation system associated with our company's operations is classified in several ways such as function, behavior, capabilities, materials or elements, time, and nature. The DroneTech Inc. also incurs other types of cost that include salaries and wages of hiring new, highly skilled and competent professionals. Cost classification based on nature mainly focuses on the nature of work demands for the DroneTech Inc. to hire system engineers, software engineers, software architect, and other technology experts to design the system. Our company cost classification is consistent with the USA government policies.
Reasonable, Allowable and Allocable Costs
After the initial set-up of the DroneTech Inc. was complete, the office of financial …show more content…
is new in the industry. Therefore, the best method is GSA contracts and pricing agreements. The method is presumed to be fair and reasonable. Pricing agreement is a deal between the companies and the government. The agreement can also be between the companies and other foreign administrators. The pricing agreement can be bilateral that is between VectorCal and The DroneTech Inc., or the agreement can be multilateral. This system of pricing ensures both companies and other firms in the industry will benefit. The pricing agreement method requires both the companies to sit down with the customer and decide on the pricing of a particular commodity. The agreement is usually good for a given period. The agreed price may be fixed, or the price may be tied to a market index. Each pricing agreement program is carried out by a team that changes. Each team is expected to choose a team leader. The responsibility of a team leader is to assemble a team that is inclusive of an economist, examiner, an LMSB field counsel and a USA competent authority analyst. Other members that may be brought in depending on the nature of the involved companies and products are LMSB Technical Advisor, LMSB exam personnel or an appeals officer. The method works efficiently in a regulated business environment, where transparency is essential. Pricing agreement will provide VectorCal and DroneTech Inc. with certainty and
Reasonable, Allowable and Allocable Costs
After the initial set-up of the DroneTech Inc. was complete, the office of financial …show more content…
is new in the industry. Therefore, the best method is GSA contracts and pricing agreements. The method is presumed to be fair and reasonable. Pricing agreement is a deal between the companies and the government. The agreement can also be between the companies and other foreign administrators. The pricing agreement can be bilateral that is between VectorCal and The DroneTech Inc., or the agreement can be multilateral. This system of pricing ensures both companies and other firms in the industry will benefit. The pricing agreement method requires both the companies to sit down with the customer and decide on the pricing of a particular commodity. The agreement is usually good for a given period. The agreed price may be fixed, or the price may be tied to a market index. Each pricing agreement program is carried out by a team that changes. Each team is expected to choose a team leader. The responsibility of a team leader is to assemble a team that is inclusive of an economist, examiner, an LMSB field counsel and a USA competent authority analyst. Other members that may be brought in depending on the nature of the involved companies and products are LMSB Technical Advisor, LMSB exam personnel or an appeals officer. The method works efficiently in a regulated business environment, where transparency is essential. Pricing agreement will provide VectorCal and DroneTech Inc. with certainty and