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Profit Equals Total Revenues.docx
1. [From 10$/Pg] Profit Equals Total Revenues
[From 10$/Pg] Profit Equals Total RevenuesSubmit a meaningful reply of 400 – 450 words
to the below post. Synthesize course material and demonstrate critical thinking, graduate-
level writing skills, and
professional accounting and business journals.
posed and in the analysis of each peer’s post demonstrate analysis, synthesis of all course
materials, tact, and insight. Opinion is worth little unless it is supported by quotes and/or
paraphrases from the textbooks and professional journals. Adhere to current APA format in
all posts. Abstract In the time that business has been around, so has the idea of cost and
profit. According to research from Codjia (2017), cost pertains to money a business spends
to acquire materials for resale or inclusion in its production cycle while profit equals total
revenues minus accounting costs. Simply put, cost is what a business pays to work on a
project while profit is the money they make minus expenses. The company selected for this
research is Whole Foods. Whole Foods uses both cost estimation and profit planning to
successfully execute its projects. Keywords: cost estimation, cost management, profit
planning, strategyCost Estimation and Profit Planning: Whole Foods Cost estimation is a
statement that gives the value of the cost. According to research from Blocher et. al. (2021),
it is the development of a well-defined relationship between a cost object and its cost
drivers. The purpose of the cost estimation is to predict cost. It helps predict future costs,
identify key cost drivers, and is useful in planning and decision making. In research from
Suwanjang and Prompoon (2012), cost estimation is one of the most challenging works to
do because the information on cost is not known until the final stage of the project.
However, the cost of a project needs to be estimated at the initial stage of the project to
calculate a total amount that determines a project’s budget. Although cost estimation can be
challenging, it is an essential part of the project that helps to manage all a project’s affiliated
costs to keep the project on budget and deliver on time. Profit planning is the set of
actions taken to achieve a targeted profit level. According to research from Blocher et. al.
(2021), it is a method of analyzing how various operating and marketing decisions affect
profit. It is based on an understanding of the relationship between variable costs, fixed
costs, unit selling price, and output level. In research from Parajuli and Shrestha (2020),
profit planning is an income calculation. It is a pre-determination of the expenditures of a
project. It predicts how much revenue will be generated and how it should be spent to meet
the criteria for investment and profit. Profit planning is looking at the potential return on
2. the investment into the project. Cost estimation and profit planning are important
aspects of managing resources that Whole Foods uses to successfully execute projects.
According to research from Robertiello (2011), Whole Foods Market’s Midwest Region
division uses a software recipe and inventory management control program. The purpose of
the software is to value the costs related to its growing volume of food service and deli
business. The software helps the division of the natural-food chain increase deli efficiency
through margin controls and recipe information. It looks at the relationship between cost
and cost drivers. The software helps in profit planning by calculating margin and food-cost
information, leading deli officials to eliminate products when specific ingredients
sometimes temporarily with fluctuating prices become too expensive. By looking at how
operating and marketing decisions affect profit, Whole Foods is increasing profit by
controlling margin and food cost. Cost estimation and profit planning are a technique to
count the cost. In the scriptures, it talks about counting the cost as well. In Luke, it says, “For
which of you, desiring to build a tower, does not first sit down and count the cost, whether
he has enough to complete it? Otherwise, when he has laid a foundation and is not able to
finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to
finish’ (Luke 14:29-30, ESV).” This scripture helps us to see that proper planning is
important before we agree to a task or project. We need to analyze what is required and
calculate the cost if we should accept or reject a task or project. For Christians, this is an
important aspect of discipleship as we need to consider what it would cost and what is
involved to become a disciple of Jesus. Business leaders would do well to incorporate
counting the cost in business. Before investing time and resources into a project, a business
should count the cost by estimating the cost and establishing a target
profit.ReferencesBlocher, E., Juras, P., & Smith, S. (2021). Cost management: A strategic
emphasis (9th ed.). McGraw Hill.Codjia, M. (2017, November 21). Difference between
accounting costs & accounting profit. Small Business – Chron.Com.
https://smallbusiness.chron.com/difference-between-accounting-costs-accounting-profit-
26278.htmlParajuli, D., & Shrestha, P. (2020). Strategic profit planning and organizational
performance in public sector commercial banks of Nepal. Research Journal of Finance and
Accounting, 11(22). https://doi.org/10.7176/rjfa/11-22-01Robertiello, J. (2011, December
31). Whole Foods cooks up cost management for deli with software. Supermarket News.
https://www.supermarketnews.com/archive/whole-foods-cooks-cost-management-deli-
softwareSuwanjang, H., & Prompoon, N. (2012). Framework for developing a software cost
estimation model for software modification based on a relational matrix of project profile
and software cost using an analogy estimation method. International Journal of Computer
and Communication Engineering, 129–134. https://doi.org/10.7763/ijcce.2012.v1.36
![[From 10$/Pg] Profit Equals Total Revenues
[From 10$/Pg] Profit Equals Total RevenuesSubmit a meaningful reply of 400 – 450 words
to the below post. Synthesize course material and demonstrate critical thinking, graduate-
level writing skills, and
professional accounting and business journals.
posed and in the analysis of each peer’s post demonstrate analysis, synthesis of all course
materials, tact, and insight. Opinion is worth little unless it is supported by quotes and/or
paraphrases from the textbooks and professional journals. Adhere to current APA format in
all posts. Abstract In the time that business has been around, so has the idea of cost and
profit. According to research from Codjia (2017), cost pertains to money a business spends
to acquire materials for resale or inclusion in its production cycle while profit equals total
revenues minus accounting costs. Simply put, cost is what a business pays to work on a
project while profit is the money they make minus expenses. The company selected for this
research is Whole Foods. Whole Foods uses both cost estimation and profit planning to
successfully execute its projects. Keywords: cost estimation, cost management, profit
planning, strategyCost Estimation and Profit Planning: Whole Foods Cost estimation is a
statement that gives the value of the cost. According to research from Blocher et. al. (2021),
it is the development of a well-defined relationship between a cost object and its cost
drivers. The purpose of the cost estimation is to predict cost. It helps predict future costs,
identify key cost drivers, and is useful in planning and decision making. In research from
Suwanjang and Prompoon (2012), cost estimation is one of the most challenging works to
do because the information on cost is not known until the final stage of the project.
However, the cost of a project needs to be estimated at the initial stage of the project to
calculate a total amount that determines a project’s budget. Although cost estimation can be
challenging, it is an essential part of the project that helps to manage all a project’s affiliated
costs to keep the project on budget and deliver on time. Profit planning is the set of
actions taken to achieve a targeted profit level. According to research from Blocher et. al.
(2021), it is a method of analyzing how various operating and marketing decisions affect
profit. It is based on an understanding of the relationship between variable costs, fixed
costs, unit selling price, and output level. In research from Parajuli and Shrestha (2020),
profit planning is an income calculation. It is a pre-determination of the expenditures of a
project. It predicts how much revenue will be generated and how it should be spent to meet
the criteria for investment and profit. Profit planning is looking at the potential return on](https://image.slidesharecdn.com/profitequalstotalrevenues-230526113434-f9a63aea/85/Profit-Equals-Total-Revenues-docx-1-320.jpg)
