This document provides a cost analysis of manufacturing scented candles. It discusses the manufacturing process, maximum monthly production capacity, estimated costs including direct materials, direct labor, manufacturing overhead and support costs. Costs are classified and budgets are developed using both traditional simple costing and activity-based costing methods. Under simple costing, the full cost per candle is estimated at Tk. 98, while activity-based costing estimates the cost per candle at Tk. 80. The document aims to apply managerial accounting concepts to product costing for scented candles.
The document provides details about the candle business being started. It discusses the history of candles dating back 5000 years. It then outlines the partnership between Rahul David and Naithali D'costa to start Candle Wonders in Belgaum, India. Key details include a capital investment of Rs. 48,00,000, products to be offered, market survey results, manufacturing process, machinery required, and production targets.
Candle Wonders Pvt. Ltd. is a partnership firm located in Bengaluru that manufactures and trades candles. Their vision is to light up every family's life through producing a variety of quality candles at reasonable prices. They plan to target both rural and urban markets in India. The production process involves heating wax, pouring it into molds, shaping the candles, and packing them. They estimate annual sales of Rs. 10 lakhs and break-even point at 24,250 units based on projected costs and revenues. The financial plan shows sufficient funds are available to start operations.
How to start Candle business Plan & StrategyJunaid Amjad
This document provides an overview of starting a candle making business. Some key points:
1) Candle making requires little investment and has growth potential due to candles being used for celebrations, religious purposes, and decorations.
2) The business goals are to increase customer satisfaction, generate revenue, and maximize profits by delivering quality products and services.
3) The marketing strategy will involve selling scented, colored, and designed candles in Jhelum and Sarai Alamgir at competitive prices through catalogs and pamphlets.
4) Financial projections estimate revenues increasing from Rs. 80,000 in year 1 to Rs. 160,000 in year 2 to Rs. 240,000 in year 3 as
The document discusses productivity and how it is measured. It defines productivity as a ratio of output to input. Key points:
- Productivity increased annually in the US economic system by about 2.5%, with contributions from capital (38%), labor (10%), and management (52%).
- Measures of productivity include output per labor hour, units produced, value added, and multifactor productivity.
- Improving productivity leads to lower costs, higher wages, and competitive advantage. It is important for standards of living.
The document provides financial statements for XYZ Company for the year ended December 31, 1991. It includes a cost of goods manufactured statement showing costs of $440,000 to produce goods, a income statement showing net profit of $36,400, and a balance sheet with total assets of $301,050 and stockholder equity of $279,050.
The document discusses process design and facility layout. It covers topics like process selection, automation, basic layout types including product, process and fixed-position layouts. It also discusses cellular layouts, line balancing to determine the minimum number of workstations, and calculates efficiency. An example of designing a fruit snack assembly line is provided to illustrate the concepts.
Chapter 5 : Relevant Costing For Decision MakingPeleZain
The document discusses relevant costs, opportunity costs, and sunk costs in the context of business decision making. It provides definitions and examples of each cost type. Relevant costs are those that differ between alternatives in a decision. Opportunity costs represent potential benefits given up by choosing one alternative over another. Sunk costs cannot be changed by any decision because they have already been incurred in the past. The document considers how these cost concepts apply to specific business decisions around accepting special orders, adding or dropping product lines, make-or-buy decisions, and further processing.
S-Donut is a donut shop opening in Los Angeles that will offer classic and specialty donuts, beverages, and delivery. The five partners have invested $100,000. They project sales of 1,140 donuts per day in the first month, with a target of 450 customers daily. S-Donut will be located near the University of Southern California and aims to attract students and local residents with competitive prices, promotions, and social media advertising.
The document provides details about the candle business being started. It discusses the history of candles dating back 5000 years. It then outlines the partnership between Rahul David and Naithali D'costa to start Candle Wonders in Belgaum, India. Key details include a capital investment of Rs. 48,00,000, products to be offered, market survey results, manufacturing process, machinery required, and production targets.
Candle Wonders Pvt. Ltd. is a partnership firm located in Bengaluru that manufactures and trades candles. Their vision is to light up every family's life through producing a variety of quality candles at reasonable prices. They plan to target both rural and urban markets in India. The production process involves heating wax, pouring it into molds, shaping the candles, and packing them. They estimate annual sales of Rs. 10 lakhs and break-even point at 24,250 units based on projected costs and revenues. The financial plan shows sufficient funds are available to start operations.
How to start Candle business Plan & StrategyJunaid Amjad
This document provides an overview of starting a candle making business. Some key points:
1) Candle making requires little investment and has growth potential due to candles being used for celebrations, religious purposes, and decorations.
2) The business goals are to increase customer satisfaction, generate revenue, and maximize profits by delivering quality products and services.
3) The marketing strategy will involve selling scented, colored, and designed candles in Jhelum and Sarai Alamgir at competitive prices through catalogs and pamphlets.
4) Financial projections estimate revenues increasing from Rs. 80,000 in year 1 to Rs. 160,000 in year 2 to Rs. 240,000 in year 3 as
The document discusses productivity and how it is measured. It defines productivity as a ratio of output to input. Key points:
- Productivity increased annually in the US economic system by about 2.5%, with contributions from capital (38%), labor (10%), and management (52%).
- Measures of productivity include output per labor hour, units produced, value added, and multifactor productivity.
- Improving productivity leads to lower costs, higher wages, and competitive advantage. It is important for standards of living.
The document provides financial statements for XYZ Company for the year ended December 31, 1991. It includes a cost of goods manufactured statement showing costs of $440,000 to produce goods, a income statement showing net profit of $36,400, and a balance sheet with total assets of $301,050 and stockholder equity of $279,050.
The document discusses process design and facility layout. It covers topics like process selection, automation, basic layout types including product, process and fixed-position layouts. It also discusses cellular layouts, line balancing to determine the minimum number of workstations, and calculates efficiency. An example of designing a fruit snack assembly line is provided to illustrate the concepts.
Chapter 5 : Relevant Costing For Decision MakingPeleZain
The document discusses relevant costs, opportunity costs, and sunk costs in the context of business decision making. It provides definitions and examples of each cost type. Relevant costs are those that differ between alternatives in a decision. Opportunity costs represent potential benefits given up by choosing one alternative over another. Sunk costs cannot be changed by any decision because they have already been incurred in the past. The document considers how these cost concepts apply to specific business decisions around accepting special orders, adding or dropping product lines, make-or-buy decisions, and further processing.
S-Donut is a donut shop opening in Los Angeles that will offer classic and specialty donuts, beverages, and delivery. The five partners have invested $100,000. They project sales of 1,140 donuts per day in the first month, with a target of 450 customers daily. S-Donut will be located near the University of Southern California and aims to attract students and local residents with competitive prices, promotions, and social media advertising.
This document summarizes the business plan for a banana and camote chip manufacturing company called Friend Chips. The company aims to be a leading producer of flavored banana and camote chips in Pangasinan. It plans to offer various flavored chips and maximize profits to meet market demand. The summary includes production details like raw material quantities and packaging. It also provides sales projections, cost analyses, organizational structure, and 5-year financial forecasts. The document outlines the company's goals, operations, and expected financial performance in concise detail.
1. Calculate contribution margin per customer as average revenue ($8) minus average variable cost ($3), which is $5.
2. Calculate break-even point in customers as fixed costs ($450,000) divided by contribution margin per customer ($5), which is 90,000 customers.
3. Calculate taxable income as contribution margin ($5 per customer) times number of customers minus fixed costs ($450,000).
4. Calculate income taxes as 30% of taxable income.
5. Calculate net income as taxable income minus income taxes.
This is a Feasibility Study conducted by a group of students "The Incorporators" from Capitol University's Bachelor of Science In Business Administration major in Marketing Management and Human resource Management.
Note: This document is not available to download, sorry for the inconvenience.
Core, actual and augmented products of different companiesLovely Ann Caluag
This document provides examples and explanations of core, actual, and augmented products for several companies:
- Seven Eleven's core product is convenience, with an actual product of foods and drinks and augmented services like cleanliness and customer assistance.
- Baliwag Transit's core products are low cost and speed, with an actual product of air-conditioned buses and augmented services like music.
- Sun Life Insurance's core product is insurance policies, with an actual product of insurance documents and augmented assurance of expected performance.
- Mang Inasal's core products are speed and value, with an actual product of Filipino fast food and augmented free soup and package deals.
It also discusses pricing strategies, distribution
Before you start a business you need capital to ensure the sufficient requirements. Therefore, you can raise capital from a number of parties such as bankers, investors and customers. Before you send your proposal, you need to explain more about the purpose, budget, target and the amount you want to borrow. So this is an example of the best presentation slide.
The document summarizes key concepts about forecasting from the 8th edition of the textbook "Operations Management" by William J. Stevenson. It discusses definitions of forecasting, the importance and uses of forecasts in various business functions. Methods of forecasting include qualitative judgmental forecasts, quantitative time series analysis, and associative models using explanatory variables. Specific forecasting techniques covered include naive forecasts, moving averages, exponential smoothing, trend analysis, and regression. The document also addresses evaluating forecast accuracy and controlling forecasts.
Developing a Mission and Vision Statement (A Sandwich company)mirabelo
The document discusses the development of a mission and vision statement for Tramporl, a sandwich maker company. The mission statement aims to make Tramporl a leading brand known for fresh, homemade, quality and affordable sandwiches that provide a healthy, refreshing and satisfying meal. The vision statement envisions delivering fresh sandwiches straight to customers to support a healthy lifestyle affordably and generate value for all stakeholders. The document outlines the techniques used to develop the mission and vision statements, which included identifying the company's goals and values to create inspiring statements.
This document provides an introduction to costing and pricing concepts. It defines various types of costs, including direct and indirect costs, fixed and variable costs, as well as classifications such as by nature, function, variability and normality. Key points covered include:
- Costs represent the monetary value of resources consumed in production and delivery of goods or services.
- Costs are classified in several ways, including by nature (material, labor, expenses), function (production, selling, distribution), and variability (fixed, variable, step).
- Direct costs are easily traceable to a specific product or service, while indirect costs are shared across multiple products or services.
- Understanding different cost classifications helps with business decision making
The document discusses estate tax in the Philippines, including that it is imposed on the right of the deceased to transmit properties to heirs upon death. It provides the estate tax table which outlines the tax rates applied to different net estate amounts. Examples are given to illustrate how to compute estate tax, including applying credits for taxes paid in foreign countries to avoid double taxation.
Woolworks is a sole proprietorship owned by Irene McGinley that manufactures custom crochet items out of her home. She has over 20 years of experience designing and crocheting items by hand. Woolworks provides custom designs for gifts or artwork by working closely with customers. Irene is seeking €7,000 to expand Woolworks into a full-time business and fund initial inventory, equipment, marketing and a website. Her business plan outlines financial projections, products/services, competitors, target markets and growth strategies.
This document discusses productivity, technology, and Nescafe coffee. It provides information on:
1. Definitions of productivity as a measure of production efficiency and ratio of outputs to inputs. Technology is defined as tools, machines, and methods to solve problems or perform functions.
2. How technology can reduce production costs, make processes more eco-friendly, reduce time and increase incomes and quality of life.
3. Details on Nescafe as the world's leading coffee brand, its origins and achievements, production process involving selecting, roasting, grinding beans, and evaporation.
4. Efforts by Nescafe to increase sustainability through reducing water and energy usage, lowering
Eduardo Cojuangco, CEO of San Miguel Corporation, is reassessing the company's business strategy due to slower growth of their flagship beer product, San Miguel Beer, which has a large market share. Cojuangco diversified the company into non-allied industries like energy and infrastructure, but credit agencies downgraded San Miguel's rating, lowering its stock price. Cojuangco must now evaluate if the diversification strategy was correct or if he should change the company's marketing approach to boost beer sales through new flavors, improved packaging, and celebrity endorsements.
The comparative analysis of robinsons place and sm mallChristian Bocalan
Robinsons Malls is one of the largest shopping mall operators in the Philippines owned by Chinese Filipino entrepreneur John Gokongwei, Jr. It has a strong market position with experienced business units and skilled workforce. However, it faces threats from increasing costs and external risks. Robinsons' marketing strategy is to engage customers and give them a sense of belonging by experiencing the malls. SM Malls is also a major player in the Philippine retail industry owned by Henry Sy, Sr. and Felicidad T. Sy. It has a large network of over 45 stores nationwide but lacks an online presence. Both malls generate most of their sales from merchandise and real estate but also rely on customers' materialism and social interactions
The document outlines a marketing plan for Dream Bakers, a café and bakery located in Mardan, Pakistan. It will offer a variety of coffee, cakes, pastries and other products at competitive prices. The plan details the target market, strategies, financial projections, and controls to achieve the mission of offering high quality bakery products and becoming a leading reputable bakery in the area. It analyzes competitors, trends, and provides breakdowns of expenses, cash flows, and the breakeven point. The marketing team will implement strategies around pricing, promotion, and product/service quality to attract customers and achieve financial objectives.
Starbucks is a global coffee company and coffeehouse chain headquartered in the US. It generates over $14 billion in annual revenue with over 200,000 employees. Porter's Five Forces analysis indicates rivalry is high in the coffee industry, but the threat of new entrants is low due to market saturation. Starbucks' value chain consists of primary activities like procurement, roasting, and customer service that directly create value, as well as support activities like training and technology that enhance value creation. Starbucks relies on high quality products and excellent customer service for marketing rather than large advertising budgets.
Monde Nissin Corporation operates a highly automated noodle production facility in Sta. Rosa, Laguna that uses a continuous production process across seven stages. The facility has the capacity to produce 6-10 million pouches per day. It utilizes advanced machinery and robots to maximize efficiency and limit human intervention to just the packaging stage. Locating in Laguna provides benefits like lower costs, easy access to major markets, abundant raw material sources, and a large skilled labor pool.
The document provides a feasibility study for upgrading the systems at Cyberbiz Internet Cafe. It describes the current sole proprietorship model of the business and manually operated systems for login/logout, printing, and other services. The main problems identified are the cafe's slower internet speeds compared to competitors and the lack of a networked environment, which causes issues with monitoring usage times and infection risks. The study will analyze the current systems, identify economic and service issues, and provide recommendations for improvements.
Project Feasibility Study of a Modular Bamboo Bhair (Yutuc, Maniago, Luciano)Angelo Yutuc
What used to be a poor man’s timber, bamboo is becoming a material of choice for many
products across varying industries due to properties that rival, if not exceed, most commonly used
material in building crafts, furniture, and other structure. Bamboo is the tallest perennial grass that
belongs to the family of Gramineae. Due to the long cylindrical structure of the culm, bamboo is a
versatile material for a variety of economic uses such as for handicraft and furniture, farm
implements, fish pen, fish cages, banana props, musical instruments, pulp and paper, and house
construction. Aside from these uses the young shoots of some species are edible for human
consumption (Trees and their Management, 1992). The aim of the study is to produce a modular chair made from bamboo poles whose function is to
be proportional to the human body, and can be assembled by people even with no special training in
furniture making, without the requirement of special tools in assembly, and can be shipped in a knockeddown
state. Furniture that are large and bulky occupy a substantial volume in a shipping container or a
transport vehicle. Thus, shipping furniture is relatively expensive as compared to the cost of shipping
other things.
Process costing explained with examples free of cost .It is for students of managerial accounting ,read this to quickly go through process costing.
http://www.brightscholarships.com
Twitter @scholarshipskys
1. The document is a project report submitted by a group of students on applying managerial accounting concepts to product costing of sandals.
2. It includes an analysis of manufacturing process, estimated costs including direct material, direct labor, manufacturing overhead. It also classifies costs as variable and fixed.
3. The group estimates production capacity, calculates cost per unit using simple costing and activity based costing, and analyzes profitability using income statement in traditional and contribution format.
ACT 333__Cost accounting report on fountainKhorsed Prince
This document is a group project report submitted to a lecturer for an accounting course. It provides details on analyzing the costs of producing a customized indoor fountain product. It discusses the manufacturing process, direct materials and labor costs, manufacturing overhead costs, support and selling costs, costing methods like simple costing and activity-based costing, budgets, break-even analysis, and a profitability comparison. The group focused on costing and pricing strategies for the fountain product as required by the course guidelines.
This document summarizes the business plan for a banana and camote chip manufacturing company called Friend Chips. The company aims to be a leading producer of flavored banana and camote chips in Pangasinan. It plans to offer various flavored chips and maximize profits to meet market demand. The summary includes production details like raw material quantities and packaging. It also provides sales projections, cost analyses, organizational structure, and 5-year financial forecasts. The document outlines the company's goals, operations, and expected financial performance in concise detail.
1. Calculate contribution margin per customer as average revenue ($8) minus average variable cost ($3), which is $5.
2. Calculate break-even point in customers as fixed costs ($450,000) divided by contribution margin per customer ($5), which is 90,000 customers.
3. Calculate taxable income as contribution margin ($5 per customer) times number of customers minus fixed costs ($450,000).
4. Calculate income taxes as 30% of taxable income.
5. Calculate net income as taxable income minus income taxes.
This is a Feasibility Study conducted by a group of students "The Incorporators" from Capitol University's Bachelor of Science In Business Administration major in Marketing Management and Human resource Management.
Note: This document is not available to download, sorry for the inconvenience.
Core, actual and augmented products of different companiesLovely Ann Caluag
This document provides examples and explanations of core, actual, and augmented products for several companies:
- Seven Eleven's core product is convenience, with an actual product of foods and drinks and augmented services like cleanliness and customer assistance.
- Baliwag Transit's core products are low cost and speed, with an actual product of air-conditioned buses and augmented services like music.
- Sun Life Insurance's core product is insurance policies, with an actual product of insurance documents and augmented assurance of expected performance.
- Mang Inasal's core products are speed and value, with an actual product of Filipino fast food and augmented free soup and package deals.
It also discusses pricing strategies, distribution
Before you start a business you need capital to ensure the sufficient requirements. Therefore, you can raise capital from a number of parties such as bankers, investors and customers. Before you send your proposal, you need to explain more about the purpose, budget, target and the amount you want to borrow. So this is an example of the best presentation slide.
The document summarizes key concepts about forecasting from the 8th edition of the textbook "Operations Management" by William J. Stevenson. It discusses definitions of forecasting, the importance and uses of forecasts in various business functions. Methods of forecasting include qualitative judgmental forecasts, quantitative time series analysis, and associative models using explanatory variables. Specific forecasting techniques covered include naive forecasts, moving averages, exponential smoothing, trend analysis, and regression. The document also addresses evaluating forecast accuracy and controlling forecasts.
Developing a Mission and Vision Statement (A Sandwich company)mirabelo
The document discusses the development of a mission and vision statement for Tramporl, a sandwich maker company. The mission statement aims to make Tramporl a leading brand known for fresh, homemade, quality and affordable sandwiches that provide a healthy, refreshing and satisfying meal. The vision statement envisions delivering fresh sandwiches straight to customers to support a healthy lifestyle affordably and generate value for all stakeholders. The document outlines the techniques used to develop the mission and vision statements, which included identifying the company's goals and values to create inspiring statements.
This document provides an introduction to costing and pricing concepts. It defines various types of costs, including direct and indirect costs, fixed and variable costs, as well as classifications such as by nature, function, variability and normality. Key points covered include:
- Costs represent the monetary value of resources consumed in production and delivery of goods or services.
- Costs are classified in several ways, including by nature (material, labor, expenses), function (production, selling, distribution), and variability (fixed, variable, step).
- Direct costs are easily traceable to a specific product or service, while indirect costs are shared across multiple products or services.
- Understanding different cost classifications helps with business decision making
The document discusses estate tax in the Philippines, including that it is imposed on the right of the deceased to transmit properties to heirs upon death. It provides the estate tax table which outlines the tax rates applied to different net estate amounts. Examples are given to illustrate how to compute estate tax, including applying credits for taxes paid in foreign countries to avoid double taxation.
Woolworks is a sole proprietorship owned by Irene McGinley that manufactures custom crochet items out of her home. She has over 20 years of experience designing and crocheting items by hand. Woolworks provides custom designs for gifts or artwork by working closely with customers. Irene is seeking €7,000 to expand Woolworks into a full-time business and fund initial inventory, equipment, marketing and a website. Her business plan outlines financial projections, products/services, competitors, target markets and growth strategies.
This document discusses productivity, technology, and Nescafe coffee. It provides information on:
1. Definitions of productivity as a measure of production efficiency and ratio of outputs to inputs. Technology is defined as tools, machines, and methods to solve problems or perform functions.
2. How technology can reduce production costs, make processes more eco-friendly, reduce time and increase incomes and quality of life.
3. Details on Nescafe as the world's leading coffee brand, its origins and achievements, production process involving selecting, roasting, grinding beans, and evaporation.
4. Efforts by Nescafe to increase sustainability through reducing water and energy usage, lowering
Eduardo Cojuangco, CEO of San Miguel Corporation, is reassessing the company's business strategy due to slower growth of their flagship beer product, San Miguel Beer, which has a large market share. Cojuangco diversified the company into non-allied industries like energy and infrastructure, but credit agencies downgraded San Miguel's rating, lowering its stock price. Cojuangco must now evaluate if the diversification strategy was correct or if he should change the company's marketing approach to boost beer sales through new flavors, improved packaging, and celebrity endorsements.
The comparative analysis of robinsons place and sm mallChristian Bocalan
Robinsons Malls is one of the largest shopping mall operators in the Philippines owned by Chinese Filipino entrepreneur John Gokongwei, Jr. It has a strong market position with experienced business units and skilled workforce. However, it faces threats from increasing costs and external risks. Robinsons' marketing strategy is to engage customers and give them a sense of belonging by experiencing the malls. SM Malls is also a major player in the Philippine retail industry owned by Henry Sy, Sr. and Felicidad T. Sy. It has a large network of over 45 stores nationwide but lacks an online presence. Both malls generate most of their sales from merchandise and real estate but also rely on customers' materialism and social interactions
The document outlines a marketing plan for Dream Bakers, a café and bakery located in Mardan, Pakistan. It will offer a variety of coffee, cakes, pastries and other products at competitive prices. The plan details the target market, strategies, financial projections, and controls to achieve the mission of offering high quality bakery products and becoming a leading reputable bakery in the area. It analyzes competitors, trends, and provides breakdowns of expenses, cash flows, and the breakeven point. The marketing team will implement strategies around pricing, promotion, and product/service quality to attract customers and achieve financial objectives.
Starbucks is a global coffee company and coffeehouse chain headquartered in the US. It generates over $14 billion in annual revenue with over 200,000 employees. Porter's Five Forces analysis indicates rivalry is high in the coffee industry, but the threat of new entrants is low due to market saturation. Starbucks' value chain consists of primary activities like procurement, roasting, and customer service that directly create value, as well as support activities like training and technology that enhance value creation. Starbucks relies on high quality products and excellent customer service for marketing rather than large advertising budgets.
Monde Nissin Corporation operates a highly automated noodle production facility in Sta. Rosa, Laguna that uses a continuous production process across seven stages. The facility has the capacity to produce 6-10 million pouches per day. It utilizes advanced machinery and robots to maximize efficiency and limit human intervention to just the packaging stage. Locating in Laguna provides benefits like lower costs, easy access to major markets, abundant raw material sources, and a large skilled labor pool.
The document provides a feasibility study for upgrading the systems at Cyberbiz Internet Cafe. It describes the current sole proprietorship model of the business and manually operated systems for login/logout, printing, and other services. The main problems identified are the cafe's slower internet speeds compared to competitors and the lack of a networked environment, which causes issues with monitoring usage times and infection risks. The study will analyze the current systems, identify economic and service issues, and provide recommendations for improvements.
Project Feasibility Study of a Modular Bamboo Bhair (Yutuc, Maniago, Luciano)Angelo Yutuc
What used to be a poor man’s timber, bamboo is becoming a material of choice for many
products across varying industries due to properties that rival, if not exceed, most commonly used
material in building crafts, furniture, and other structure. Bamboo is the tallest perennial grass that
belongs to the family of Gramineae. Due to the long cylindrical structure of the culm, bamboo is a
versatile material for a variety of economic uses such as for handicraft and furniture, farm
implements, fish pen, fish cages, banana props, musical instruments, pulp and paper, and house
construction. Aside from these uses the young shoots of some species are edible for human
consumption (Trees and their Management, 1992). The aim of the study is to produce a modular chair made from bamboo poles whose function is to
be proportional to the human body, and can be assembled by people even with no special training in
furniture making, without the requirement of special tools in assembly, and can be shipped in a knockeddown
state. Furniture that are large and bulky occupy a substantial volume in a shipping container or a
transport vehicle. Thus, shipping furniture is relatively expensive as compared to the cost of shipping
other things.
Process costing explained with examples free of cost .It is for students of managerial accounting ,read this to quickly go through process costing.
http://www.brightscholarships.com
Twitter @scholarshipskys
1. The document is a project report submitted by a group of students on applying managerial accounting concepts to product costing of sandals.
2. It includes an analysis of manufacturing process, estimated costs including direct material, direct labor, manufacturing overhead. It also classifies costs as variable and fixed.
3. The group estimates production capacity, calculates cost per unit using simple costing and activity based costing, and analyzes profitability using income statement in traditional and contribution format.
ACT 333__Cost accounting report on fountainKhorsed Prince
This document is a group project report submitted to a lecturer for an accounting course. It provides details on analyzing the costs of producing a customized indoor fountain product. It discusses the manufacturing process, direct materials and labor costs, manufacturing overhead costs, support and selling costs, costing methods like simple costing and activity-based costing, budgets, break-even analysis, and a profitability comparison. The group focused on costing and pricing strategies for the fountain product as required by the course guidelines.
Cost accounting: a project on cost analysis & budgetingRifat Hossain Khan
This is a project i worked with 3 other students. This project deals with the analysis of costs of manufacturing, pricing, budgeting. The product that we have chosen was Wooden Hanger.
This document summarizes the costing and budgeting for sandal production. It includes analysis of direct material costs, direct labor costs, manufacturing overhead costs, and allocation of overhead. Budgets are presented for production, direct materials, direct labor, cost of goods sold, income statement, contribution margin, break-even point, margin of safety, and sensitivity analysis. The objective is to apply managerial accounting concepts to determine the full cost of each sandal and budget costs and profits.
Costing model for FDM 3D printed parts - Presentation in Top3D Expo - Moscow ...Diogo Quental
This document provides a costing model for 3D printed parts using FDM technology. It outlines the key cost components to include in the model such as material, part size and infill, printer costs, processing costs, labor costs, and defects. It then provides an example cost calculation for a single part production run and analyzes the sensitivity of costs for production runs of 100 and 1000 parts. The cost components are calculated and the percentage contribution of each to the total cost is identified.
A case study of cost analysis and pricing decision of smeEnamul Islam
M. Keramot Ali Hall Dining is a sole proprietorship located on the campus of Patuakhali Science and Technology University. The report analyzes the dining hall's costs and profits over a one month period. Key findings include inaccurate sales records and an imperfect pricing system. Recommendations are to implement proper accounting practices, track sales volumes more carefully, and improve the costing system to enhance decision making.
This document discusses process costing, which is a method of cost accounting used in manufacturing industries. It involves breaking production down into sequential processes and computing an average cost per unit by dividing total production costs for a period by the units produced. Key aspects covered include accounting treatment of material, labor, and overhead costs for each process, treatment of normal and abnormal losses and gains, and methods for valuing work-in-progress inventory using either FIFO or weighted average costing. An example is provided to illustrate the calculation of process costs using both methods. Advantages of process costing include ease of preparing quotes while limitations include inability to evaluate performance or reliability for costing multiple product types.
Process costing is a costing method used when homogeneous units are produced continuously in large quantities. It assigns costs equally over the units produced in a period. There are five steps to process costing: 1) analyze physical flows, 2) calculate equivalent units, 3) determine total costs, 4) calculate unit costs, and 5) assign costs to completed and ending work-in-process units. Process costing uses journal entries to record raw material costs, conversion costs, and transfers between departments. The weighted average and first-in, first-out (FIFO) methods are two approaches to assign costs in process costing.
1. Khalid Aziz teaches financial accounting and cost accounting courses for various qualifications including ICMAP stages 1-4, ICAP modules B and D, B.Com, BBA, MBA, and PIPFA.
2. He provides crash courses and fresh classes in financial accounting and cost accounting for individuals and groups.
3. Contact information is provided for Khalid Aziz located in Karachi, Pakistan.
Important mcqs for final Managerial AccountingZiyad Zaidi
Import Mcqs for final and Mids belongs to managerial accounting subject. And answerer are also mentioned in this file. If You are a student of Hummayan Farid Uddin and you found this document means you are lucky
Costing practices in m. keramot ali hall diningEnamul Islam
This document contains cost sheets and profit/loss statements for a university dining hall. It outlines the daily and monthly costs for raw materials, wages, overhead, and sales. It identifies issues with the dining hall's accounting practices, profitability percentages, sales volume tracking, and pricing system. It recommends they improve accounting, track sales more closely, focus on high profit items, and price products based on costs and market rates. It also notes many small business owners in the country are not well-educated on maximizing profit through strategic use of assets given available skilled labor and management.
Industrial Management m.tech SE 2.12.22.pptxaryyaka99
Operations management involves planning, directing, and controlling the processes of production to maximize efficiency and profitability. It aims to design and improve processes for converting materials, labor, and energy into goods and services. Key aspects of operations management include production planning and control, inventory management, quality control, and facility location and layout. The document discusses various types of production processes like job shop, batch, mass production and continuous flow production and factors that influence plant location decisions. It also covers topics like productivity measurement, plant layout principles, and decision making in operations management.
This project aimed to reduce consumable costs at a department over 2 months. The team listed all consumables, recorded their monthly usage and costs, and tabulated this data. They found that the top 3 consumables - Spark Spray, Windowlene, and Silicone Spray - accounted for over 80% of total costs. Alternative cheaper products were identified and implemented, resulting in projected monthly savings of 65.8% for Spark Spray, 87.9% for Windowlene, and 71.4% for Silicone Spray.
Hilton Products manufactures one product in two departments on a con.docxfideladallimore
Hilton Products manufactures one product in two departments on a continuous basis and uses the average method of process cost accounting.
The following information was reported for the month of May.
Hilton Products manufactures one product in two departments on a continuous basis and uses the average method of process cost accounting.
The following information was reported for the month of May.
Production Costs
Machining
Assembly
Work in process, beginning of month:
$
-
$
27,000
Cost in Machining
Materials
$
4,000
$
800
Labor
3,000
400
Factory overhead
2,000
$
9,000
600
$
1,800
Cost incurred during month:
Materials
$
68,000
$
44,000
Labor
51,000
22,000
Factory overhead
34,000
153,000
33,000
99,000
Total
$
162,000
$
127,800
Production Costs
Machining
Assembly
(Units)
(Units)
In process, beginning of month
1,000
1,000
Finished and transferred during month
5,000
4,000
In process, end of month
2,000
2,000
Stage of completion as to materials, labor, overhead
One-half
One-half
Requirements:
Prepare a cost of production summary for each department for the month.
Berg Products
Cost of Production Summary—Machining
For the Month Ended May 31, 2011
Cost of work in process, beginning of month:
Materials
Labor
Factory overhead
Cost of production for month:
Materials
Labor
Factory overhead
Total costs to be accounted for
Unit output for month:
Finished and transferred to Assembly during month
Equivalent units of WIP, end of month
Total equivalent production
Unit cost for month:
Materials
Labor
Factory overhead
Total
Inventory costs:
Cost of goods finished & transferred to Assembly during month
Cost of work in process, end of month:
Materials
Labor
Factory overhead
Total production costs accounted for
Berg Products
Cost of Production Summary—Assembly
For the Month Ended May 31, 2008
Cost of work in process, beginning of month:
Cost in Machining
Cost in Assembly:
Materials
Labor
Factory overhead
Cost of goods received from Machining during month
Cost of production for month:
Materials
Labor
Factory overhead
Total cost to be accounted for
Unit output for month:
Finished and transferred to stockroom during month
Equivalent units of work in process, end of month
Total equivalent production
Unit cost for month:
Cost from prior department:
Beginning inventory
Transferred in this month
Average cost per unit
Cost in Assembly:
Materials
Labor
Factory overhead
Total
Inventory costs:
.
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1. 1 | P a g e
Scented Candle
Manufacturing and Costing
2. 2 | P a g e
Submitted To: Sheikh Mohammad Rabby (RBY)
Lecturer, Department of Accounting & Finance
Managerial Accounting (ACT333)
Section: 1
Date of Submission: 17th December 2018
Prepared By:
NAME ID
1. Sabrina Rashid 1421297630
2. Rizwan Chowdhury 152083301
3. Fairooz Shaira 1610726030
4. Saad Mohammed Taher 1610926030
5. Afia Zahin 1611773030
3. 3 | P a g e
Letter of transmittal
17 December, 2018
Sheikh Mohammad Rabby
Lecturer, Department of Accounting & Finance
School of Business and Economics
North South University
Subject: Submission of the report on Costing of Scented Candle.
Sir,
It is a great pleasure and privilege for us to present you the report. The Analysis of costing of a
product (Scented Candle) was assigned to us few weeks back as a requirement of the course
completion of ACT333.
Throughout the assignment we had to research a lot which helped us to gain an in depth
knowledge on the analyzing of all costs associated with the product. We have tried our best to
accommodate as much as information and facts as possible following the guidelines you have
provided. We have tried to make this report as relevant as we could.
We are grateful to you for your kind cooperation at every step of our journey in making this
report. We hope you find this report useful and find our hard work and dedication while
evaluating the report.
Sincerely,
1. Sabrina Rashid
2. Rizwan Chowdhury
3. Fairooz Shaira
4. Saad Mohammed Taher
5. Afia Zahin
4. 4 | P a g e
TABLE OF CONTENTS
Title Page Number
Manufacturing Process 06
Maximum Production in a Month 07
Estimated Costs 07
Cost Classification 09
Simple Costing 09
Prime Cost, Conversion Cost 11-12
Full Cost 12
Activity Based Costing 13
Simple Costing vs Activity Based Costing 15
Forecasts
Revenue Budget 16
Production Budget 16
Direct Material Usage Budget 16
Direct Material Purchase Budget 17
Direct Labor Budget 17
Manufacturing Overhead Cost Budget 18
Ending Inventory Budget 18
Cost of Goods Sold Budget 19
Income Statement
Traditional Format 19
Contribution Format 19
Evaluation 20
Sensitivity Analysis 21
Conclusion 22
5. 5 | P a g e
Abstract
This report is to attach our knowledge concerning managerial accounting concepts to product
costing. Our team members decided to work on a product which is Scented Candle. In this
report, we will be looking into the production in a month, cost per month, whole financial and
managerial process of our product. Moreover, it will contain a detailed disruption of all the
costs related parts to the scented candle and the whole manufacturing method. This product is
not only unique in terms of its look but also with its dual functionality of spreading light and a
pleasant aroma in the environment. The report also consists of the whole research we went
through to know the demand for the scented candle since the previous several years. Scented
Candle is not only attractive to look at but also very cost effective. Throughout the process of
manufacturing, we were very conscious about choosing cost effective raw materials and
manufacturing procedures to maintain a reasonable cost. Besides, our targeted consumers are
the middle class and the upper middle class people. This is because the scented candles that are
already available in the market are mostly expensive which limits the consumer from middle
class and below.
6. 6 | P a g e
MANUFACTURING PROCESS
In order to manufacture our product, we have rented a two-room apartment. One room will be
used as the production and the second as the administration and operations. We the owners
will work directly hence eliminating any need for extra labor. Five of us will be responsible for
handling production, marketing and distribution. We found this method very effective and
efficient.
In accordance to our production process of scented candles the following steps were initiated:
1. First of procure raw materials like, wax,jars, candle wick, essence, color etc.
2. Secondly we cut a bar of wax into half. ( 1 wax bar= 2 scented candle jars). And put them
into a heating container.
3. We then heat up the container in a stove until the wax starts to melt. (15 mins)
4. After reaching a minimum temperature, we drop colorings into the wax and stir it well.
5. Meanwhile, we prepare the jar. Carefully we place candle wicks in each jars.
6. Then we pour the melted wax into the jars.
7. At this stage we add the scent/essence into the jar full of colored-melted wax.
8. Then we let them to cool off by putting in a refrigerator.
9. When the wax has settled, we start our designing and packaging
10. Finally we are all ready with a scented candle.
7. 7 | P a g e
MAXIMUM PRODUCTION POSSIBLE IN A MONTH
Total number of labors 5
Working hours in a day 6 hours
Total working hours in a day (5 x 6) hours 30 hours
Total working days in a month 26
Total working hours in a month (26 x 30) hours 780 hours
Hours needed to produce 1 unit .50 hours
Maximum production possible in a month (780/.50) units 1560 units
ESTIMATED COSTS
Direct Materials:
Materials Amount Rate(Taka) Total(Taka)
1. Wax 1 slab 30 30
2. Glass Jar 1 piece 20 20
3. Essence 1ml 4 4
4. Color 1ml 2.14 2.14
5. Candle Wick 1ft 1 1
Total Direct Materials Cost Per Unit 58
Direct Labor:
Daily cost per labor Tk. 200
Working hours per day 6 hours
Hourly cost per labor Tk. (200/6) Tk. 33.33
Production time per unit .50 hour
Labor cost per unit Tk. (33 x .50) Tk. 16.50
8. 8 | P a g e
Manufacturing Overhead:
Total MOH=Tk (9,360 + 20,000) = Tk 29,360
Per unit MOH= Tk 29360/1560 = Tk18.82
Support Cost:
Cost Pool Cost per month (Taka)
Transportation 1,000
Maintenance and Security 2,000
Advertisement 5,000
Total Support Cost 8,000
Per unit Support Cost= Tk 8000/ 1560= Tk 5.13
All manufacturing overhead cost, support cost and direct labor cost are estimated according to
the current market rate
Full Cost Per candle: Tk (58+3.33+18.82+5.13) =Tk 85.28
Cost pool Cost per unit(TK) Total units Total
Ribbon 3 1560 4680
Card 2 1560 3120
Design cost 1 1560 1560
Total Variable MOH 9360
Rent expense 18000
Utility Expense 2000
Total Fixed MOH 20000
9. 9 | P a g e
COST CLASSIFICATION
Cost Cost Type
Direct Costs:
Direct Materials Variable Prime
Direct Labor Variable Prime, Conversion
Manufacturing Overhead:
Ribbon Variable Conversion
Cards Variable Conversion
Desgin Variable Conversion
Rent Fixed Conversion
Utility Expense Fixed Conversion
Support Cost:
Transportation Fixed
Maintenance & Security Fixed
Advertisement Fixed
SIMPLE COSTING
Number of units produced is taken as allocation base for calculating Pre-determined Overhead
Rate (POHR). Estimated production in a month is 1560 units.
Manufacturing Overhead in a month Tk. 29360
Estimated Production Units 1560
POHR Tk. (29360/1560) Tk. 18.82
10. 10 | P a g e
Total Cost per unit:
Direct Material: Cost (Taka)
Wax 30
Jar 20
Essence 4
Color 2.14
Candle Wick 1
Total Direct Material Cost per unit 58 Taka
Direct Labor
Hourly Labor Rate 33.33 taka
Production time per unit .50 hour
Total Direct Labor Cost per unit (33.33 x .50) 16.50
Manufacturing Overhead
Ribbon 3
Card 2
Design Costs 1
Rent 11.53
Utility 1.28
Total MOH Cost in a month
Manufacturing Overhead Cost per unit 18.82
Total Cost per unit 93.32
11. 11 | P a g e
Allocation of Supporting Cost:
Supporting Department Operating
Department
Advertisement Transportation Maintenance &
Security
Manufacturing
Overhead before
interdepartment
al allocation
5000 1000 2000 Tk.15850
Percentage of
allocation to
operating
department
100% 100% 100% Tk.8000
Total Tk.23850
We used direct method for calculating the allocation of support department. There are 3
supporting departments in total which are Transportation, Maintenance & Security and
Advertisement. Supporting departments do not have any allocation between them. All the
support department costs are allocated to the operating department.
Prime Cost
Direct materials Cost (Taka) Direct Labor Cost (Taka)
Wax 30 Hourly Labor Rate 32
Jar 20
Essence 4
Color 2.14
Candle Wick 1
Total Direct Materials 58 Total Direct Labor Cost per unit 32
Total Prime Cost = 58+ 32 = 90
12. 12 | P a g e
Conversion Cost
Direct Labor Cost Manufacturing Overhead Cost
Total Direct Labor Cost per unit 32 Total Manufacturing Overhead
Cost per unit
18.82
Total Conversion Cost = 32 + 18.82 = 50.82 Taka
FULL COST
Direct Material: Cost (Taka)
Wax 30
Jar 20
Essence 4
Color 2.14
Candle Wick 1
Total Direct Material Cost per unit 58
Direct Labor
Hourly Labor Rate 33.33
Production time per unit .50 hours
Total Direct Labor Cost per unit (33.33 x .50) 16.66
Manufacturing Overhead
Total MOH Cost in a month 29360
POHR 18.82
Manufacturing Overhead Cost per unit 18.82 18.82
Support Cost
Total Support Cost 8000
Support Cost per unit (8000/1560) 5.12
Full Cost 98 Taka
13. 13 | P a g e
ABC System
Cost Pool Cost Driver Activity Cost
(Taka)
Activity Activity Rate
Ribbon Number of units
produced
4680 1560 units 3Tk. per unit
Card Number of units
produced
3120 1560 units 2Tk. per unit
Design Labor Hour 1560 780hours 2Tk. per hours
Rent Number of sq.
feet
18000 1500sq. feet 12Tk. Per sq. feet
Utility Number of Labor
Hours
2000 780 hours 3Tk. Per Hour
Maintenance &
Security
Number of labor
hours
2000 780 hours 3 Tk. per hour
Transportation Number of
deliveries
1000 10 deliveries 100Tk. Per
Delivery
Advertisement Sales units 5000 1560 units 3.21 Tk. Per Unit
14. 14 | P a g e
Cost Per Unit:
Direct Materials (39 x 1560) Taka 61,058 Taka
Direct Labor 25997 Taka
Activity Based Costing
Cost Pool Actual Activity Activity Rate Total Cost (Taka)
Ribbon 1560 units 3Tk. per unit 4680
Card 1560 units 2Tk. per unit 3120
Design 780 hours 2 Tk. per hours 1560
Rent 1500sq. feet 12Tk. Per sq.
feet
18000
Utility 780 hours 2 Tk. Per Hour 2000
Maintenance & Security 780 hours 2 Tk. per hour 2000
Transportation 10 deliveries 100Tk. Per
Delivery
1000
Advertisement 1560 units 3.21 Tk. Per Unit 5000
Activity Based Cost 37,360
Total Cost 124,415
Cost Per Unit 80
15. 15 | P a g e
SIMPLE COSTING vs. ACTIVITY BASED COSTING
Simple Costing Activity Based Costing
Revenue (100 x 1560) 156,000 Revenue (100x 1560) 156,000
Less: COGS (65 x 1,560) 101,083 Less: DM + DL 87,055
Gross Profit 59,917 Activity Based Cost 37,360
Less: Operating Expense 8000 Total (124,415)
Net Income 51,917 Net Income 31,585
Net Profit Margin 33% Net Profit Margin 20%
16. 16 | P a g e
FORECASTS
Revenue Budget:
The budgeted sales for the current month are 1560 units based on current market demand.
Budgeted Sales for the month 1560
Selling Price 100 Taka
Revenue Budget (1560 x 100) Taka 156000 Taka
Production Budget:
Units
Budgeted Sales 1404
Add; Target Ending Inventory (1560 x 10%) 156
Total Units Needed 1560
Less; Beginning Inventory 0
Units Needed to be Produced 1560
Direct Material Usage Budget
Materials Cost per unit
product (Taka)
Total Units
Needed
Total Cost
(Taka)
1. Wax 30 1560 46800
2. Jar 20 1560 31200
3. Essence 4 1560 6240
4. Color 2.14 1560 3338
5.Wick 1 1560 1560
Total Cost of Direct Materials to be used in a month 61058 Taka
17. 17 | P a g e
Direct Materials Purchase Budget
Wax (Bars) Jar Essence
(bottles)
Color
(bottles)
Wick
Production Usage 3120 1560 26 26 1560ft
Add; Target Raw
Materials Ending
Inventory (5%)
156 78 2 2 78
Total Materials
Needed
3276 1638 28 28 1638
Less; Beginning
Inventory
0 0 0 0
Raw Materials
Needed to be
Purchased
3276 1638 28 28 1638
Cost per unit 30 20 4 2.14 1
Purchase Cost (Taka) 98280 32760 112 60 1638
Total Purchase Cost = 148,923 Taka
Direct Labor Cost Budget:
Daily cost per labor Tk. 200
Working hours per day 6 hours
Hourly cost per labor Tk. (200/6) Tk. 33.33
Total Labor Hours Needed (26 days * 6hrs) 156 hours
Total Labor Hour Cost Tk. (156*33.33*5) Tk. 25997
18. 18 | P a g e
Manufacturing Overhead Cost Budget:
Cost Pool Amount Cost per month
(Taka)
Ribbon 1560 ft. 1560
Card 1560 pcs. 3120
Design 1560 units 1560
Rent 18000
Utility 2000
Total Manufacturing Overhead Cost 26240
Ending Inventory Budget:
Direct Materials Ending Inventory
Units
Cost per unit (Taka) Total Cost (Taka)
Wax 156 60 9360
Jar 78 20 1560
Essence 2 60 120
Color 2 60 120
Wick 78 5 390
Cost of Ending DM
Inventory
11550 Taka
Finished Goods
Inventory
156 78.28 12212 Taka
Total Ending Inventory 23762 Taka
19. 19 | P a g e
Cost of Goods Sold Budget:
Beginning Finished Goods Inventory 0
Cost of Goods Manufactured:
Direct Material 61058
Direct Labor 25997
Manufacturing Overhead 26,240
Cost of Goods available for sale 113,295
Less; Ending Finished Goods Inventory 12,212
Cost of Goods Sold 101083
Income Statement
Traditional Format:
Per Unit (Taka) Total (Taka)
Sales 100 1,56,000
Less; Cost of Goods Sold 65 101,083
Gross Profit 35 54,917
Less; Other Expenses 6 8000
Net Income 29 46917
Contribution Format:
Per Unit (Taka) Total (Taka) Percenta
ge
Sales 100 156000 100%
Variable Costs Direct Material 58 90480
Direct Labor 3.33 5200
Variable MOH 6 9360
Less; Total Variable Cost 67.33 105040
64.78%
Contribution Margin 32.67 50960
35.22%
Fixed Costs Fixed MOH 17.95 28000
Support Cost 5.13 8000
20. 20 | P a g e
Less; Total Fixed Cost 23.08 36000
Net Income 9.59 14960
The selling price for our scented candle is 100 taka. As we can see in the market, it is sold at
150-200 tk. But after analyzing all the cost we can cover up our cost within 100 taka along with
the profit. So our price is lower compare to our competitors.
EVALUATION
❖ Break-even Point (Units) = 36000/32.67 = 1101.92 units ≈ 1102 units.
❖ Break-even Point (Sales) = 36000/.3522 = 102,214.65 Taka
❖ Margin of Safety = (156,000 – 102,214.65) Taka = 53,785.35 Taka
SENSITIVITY ANALYSIS
Current (Taka) 12% increase
in DM Price
(Taka)
10% decrease
in demand
(Taka)
15%increase
in demand
(Taka)
Budgeted Sales Unit 1560 1560 1404 1794
Selling Price 100 100 100 100
Sales Revenue 156000 156000 140400 179400
Direct Materials
Wax 30 34 30 30
Jar 20 22 20 20
Essense 4 4.5 4 4
Color 2.14 2.4 2.14 2.14
Wick 1 1.1 1 5
Total Direct Material Cost 57.14 64 57.14 57.14
Direct Labor 3.33 3.33 3.33 3.33
MOH per unit 18.82 18.82 20.91 16.36
Total Cost Per Unit 79.29 86.15 81.38 76.83
Cost of Goods Sold 101083 134394 114258 137833
Supporting Expense 8000 8000 8000 8000
Net Income 46917 13606 18142 33567
Variable Expense per unit 67.33 73.33 67.14 65.67
Contribution Margin per unit 32.67 26.67 32.86 34.33
Break-even point (Units) 1102 1305 1096 1049
Break-even point (Sales) 102214.65 134983 92307 144000
21. 21 | P a g e
Margin of Safety 53785.35 21017 63693 12000
CONCLUSION
Scented candle is a sophisticated product, which has a basic manufacturing process and easy to
produce. The product is unique itself as it has dual function of spreading light and spread
pleasant aroma in the environment. Our target group are the middle class and the upper
middle class people. We are trying to give the product with a reasonable price and generate an
attractive amount of profit. That is why we chose to scented candle because we think it will
satisfy the customer.