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tiba two chicken

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  • 1. Group 5Nokyang Ganeung Tiba two ChickenManagement Accounting for Tiba Chicken
  • 2. ContentsIntroductionProcessCost ClassificationsCost-Volume-Profit AnalysisStandard costMaster BudgetProposal of New Set Menu1234567
  • 3. Introduction
  • 4. baTi +of the Customerby the Customerfor the CustomerDeliveryLaughter & Joy티끌모아 태산바지런하다
  • 5. Gyeonggi-do Uijeonbu-si Ganeung 1-dongPhone NumberNokyang Ganeung Tiba two ChickenLocationName031)829-9392500m200mCompetitors5 12Competitors
  • 6. Visit & InterviewProcessSelect business Contact storeBasic industryinvestigation
  • 7. Data request & Data collectionData analyzeProposal & suggestionProblem analysis
  • 8. Report writing & PresentationProcess
  • 9. Cost Classifications
  • 10. Variable costsFixed costsDirect costIndirect costDifferential costSunk costOpportunity costDirect MaterialsDirect laborManufacturing OverheadNon-manufacturing costsMarketing or selling costsAdministrative costsRecap Cost Classifications3Period costs(expensed)Product costs(inventoriable)OtherClassificationsDMVMOHFMOHUes
  • 11. Those materials that become an integral part of the product andthat can be conveniently traced directly to it.3 DMCostClassificationsDirect Material Number 8 Chicken Number 9 Chicken Sunsal Chicken Barbecue Chicken Fire Chicken Barbecue Smoke Chicken Cass Beer Soju Like the first time Chamisul Fresh Maesil liquor sparkling Pepsi big medium
  • 12. VMOHManufacturing costs that cannot be traced directly to specific units producedProportional to activityManufacturing Overhead3CostClassificationsBreading ch1Packed RadishChicken vinyl (package)Sauce caseSoy sauceFrying oilWipesNew Chicken BoxRice cakeBetter MixTiba SauceMustard SauceNew sunsal BoxTiba saltShopping bag boxCoke VinylSunsal teriyaki SauceAluminum foilTiba Shopping bagOnly one box
  • 13. FMOHFlyers (marketing)Motorcycle oilElectricity taxGas taxWater taxRentDeliver man wageConstant in totalManufacturing OverheadManufacturing costs that cannot be traceddirectly to specific units produced3CostClassifications
  • 14. Cost-Volume-Profit Analysis
  • 15. Revenue is based on an rough estimate that the shop owner provided. Because of the limited knowledge onmonthly revenue, the number of chickens sold also had to be estimated.Tiba chickens has steady quarterly sale of 1800 sets = BEP calculation.(Hypothetical set of chicken + beverages = 20,000won)Plansto trigger Higher salesSurprisingly low BEPTiba is quite flexible in its sales!More than half of its sales is pure profitit uses only 85% of its direct materials purchased, it isdesirable for Tiba to make more efficient utilizationpurchaseusesBEP
  • 16. surpass the BEP after selling about 500 sets of chicken in a quarteraverage sales is about 1800it would be able to bring the number up to 2000 with promotionsthat wont do any harm to the total sales of the shop.Revenue is based on an rough estimate that the shop owner provided. Because of the limited knowledge onmonthly revenue, the number of chickens sold also had to be estimated.Tiba chickens has steady quarterly sale of 1800 sets = BEP calculation.(Hypothetical set of chicken + beverages = 20,000won)Plansto trigger Higher salesmonthly promotionssell chickens at a lower priceSpecific day of the monthstimulate purchase.
  • 17. Standard cost
  • 18. AssumptionNext quarter budget was analyzed by standard cost of current quarter budgetPriorQuarterNextQuarterCurrentQuarter
  • 19. Problem analysis⇒ Expected usage > actual usageNeed to purchase lower quantity of⇒ Expected price > actual priceCan generate marginal cash flowDMQV & VOEVDMPV & VOSVfavorable unfavorablealcohol&beveragechickenVMOHfavorable unfavorable2/43/44/44/4chicken chickenchicken chicken chickenVMOHVMOHVMOHVMOH VMOHalcohol&beveragealcohol&beverage alcohol&beveragealcohol&beveragealcohol&beverage2/43/44/42/43/44/4⇒ Expected usage < actual usageThere can be lack of⇒ Expected price < actual priceThere may be problem with cash flow
  • 20. AQ * AP AQ * SP SQ * SPPriceVaranceQuantityVariancechicken2,129 * 3,775= 8,036,0002,128 * 4,344= 9,248,3762,180 * 4,344= 9,469,5001,212,376(F)221,124(F)alcohol&beverage3,048 * 726= 2,214,0003,048 * 517= 1,575,8163,528 * 517= 1,825,816638,184(U)249,584(F)VMOH134 * 22,141= 2,966,900134 * 17,643= 2,364,162152 * 17,643= 2,681,700602,738(U)317,538(F)(SQ, SP from 1 quarter)F : favorable varianceU : unfavorable variance2/ 4 2011
  • 21. (SQ, SP from 2quarter)AQ * AP AQ * SP SQ * SPPriceVaranceQuantityVariancechicken2,061 * 4,062= 8,372,7002,061 * 3,775= 7,780,2752,129 * 3,775= 8,036,000592,425(U)255,725(F)alcohol&beverage2,128 * 701= 1,490,9002,128 * 726= 1,544,9283,048 * 726= 2,214,00054,028(F)669,072(F)VMOH117 * 15,253= 1,784,600117 * 22,141= 2,590,497134 * 22,141= 2,966,900805,897(F)376,403(F)F : favorable varianceU : unfavorable variance3/ 4 2011
  • 22. F : favorable varianceU : unfavorable variance(SQ, SP from 3quarter)AQ * AP AQ * SP SQ * SPPriceVaranceQuantityVariancechicken1,967 * 3,995= 7,867,5001,967 * 4,062= 7,989,9542,061 * 4,062= 8,372,700122,454(F)382,746(F)alcohol&beverage2,820 * 674= 1,902,0002,820 * 701= 1,976,8202,128 * 701= 1,490,90074,820(F)485,920(U)VMOH149 * 16,905= 2,467,600149 * 15,253= 2,272,697117 * 15,253= 1,784,600194,903(U)488,097(U)4/ 4 2011
  • 23. Master Budget
  • 24. DM(chicken)Total purchase 8,337chickenQuarter average purchase 2,084chickenTotal purchase price 33,745,700wonQuarter average purchase price 8,436,425wonunit price 4,048wonDM(Drink) alcohol+beverageTotal purchase 11,524Quarter average purchase 2,881Total purchase price 7,432,300wonQuarter average purchase price 1,858,074wonunit price 645wonVMOHTotal purchase 552Quarter average purchase 138Total purchase price 9,900,800wonQuarter average purchase price 2,475,200wonunit price 17,936won2011 total budget
  • 25. 2012 ¼ Master budgetDrink(alcohol+beverage)Quarter average purchase 2,881+(maximum-minimum 1,688) = 4569 purchase645(unit price) * 4569 = 2,947,005wonChickenQuarter average purchase 2084chicken+(maximum-minimum 213chicken) = 2297chicken purchase4048(unit price) * 2297 = 9,298,256won
  • 26. VMOHquarter average purchase량 138+(maximum-minimum 35) = 173 purchase17,936(unit price) * 173 = 3,102,928wonDL & FMOHquarter average DL 11,700,000wonquarter FMOHDeliver bike oil 150,000won + tax(Electricity 900,000won + Gas 900,000won +Water 900,000won + Additional Tax 100,000won)2,800,000won + Rent(month pay) 700,000won = 3,650,000won2012 ¼ Master budget
  • 27. 2012 ¼ Quarter Budget total costDM Budget(9,298,256won) + Drink Budget(2,947,005won) + VMOH Budget(3,102,928won) + DLBudget(11,700,000won) + FMOH Budget(3,650,000won) = 30,698,189wonMonth average sales 12000000won * 3 = quarter average sales 36000000won –1/4quarter Budget total cost(30,698,189won)= expected 1/4quarter profit 5,301,811won2012 ¼ Master budget
  • 28. 2012 ¼ Master budgetCan lower budget311,605won+20-51 -31Drink(alcohol+beverage)Quarter average purchase 2,881+(maximum-minimum 1,688) = 4569 purchase645(unit price) * 4569 = 2,947,005wonChickenQuarter average purchase 2084chicken+(maximum-minimum 213chicken) = 2297chicken purchase4048(unit price) * 2297 = 9,298,256wonMax = ¼ quarter 2,180 * 4344(won) = 9,469,500won= 9,469,920wonLack of 171,664won in budgetWe should add 200,000won in budgetMax = 2 quarter 3,048 * 726(won) = 2,214,000wonUsing 2,435,300won budgetWe can lower 511,605won+Max10%
  • 29. 2012 ¼ Master budgetLabor Cost2 part time workerPM12:00 ~ Am 1:00 13hour5000won/hour, 30 day2*13*5000* 30= 11,700,000wonIt’s about Chicken industry!!!We don’t need all 2 workers at opening, endingWe don’t need 30day workersWe don’t need all 2 workers at PM 2:00~4:00If we lower this labor costWe can make More profit!!!
  • 30. ProposalNew Set Menu
  • 31. Set Menu?!Beer + ChickenTiba Two Chicken indicates, the set must beconsisted of more than 2 chickensBest Matching!!!
  • 32. Average Profit per 1 bottle of 소주 : 3000-1200=2800Average Profit per 1 draft beer : 20000/500=80 63000/80=787.5 3000-787.5=2212.5Average Profit per 1 chicken : 13000-3800(avg)=9200Lowest Profit in original set menus (Profits may differ)18000-(3800*2)=18000-7600=new set to be effective it must at leastexceed 11000 won in profits per set.Analysis11000
  • 33. 2 chickens + 1 draft beer=3800*2+2212.5=7600+2212.5=8812.58812.5+11000=19812.5The cheapest price for our new set menu would beThinking of combinations of whichchicken and what beer to includeThe most effective butcheapest price for our Set Menu19812.5To Make
  • 34. 22000 won23800 wonSuggestion2 draft beer2 Spice ChickenSunsal Chicken+ Sunsal Soy Sauce Chicken2 draft beerEQ Seasoned Spicy ChickenGarlic Soy Sauce Chicken1 Soju20800 won2 Spice Chicken1 draft beer20000 wonDoyouwanttobuy?! Brand New Set Menu