The paper "Financial Management - Cream Cheese Cookies Co Ltd" is a great example of a finance and accounting assignment. 1cream cheese is types of cookies which are made using the following methods, working in it until the cream cheese is blended, you put sugar and cream to make sure it is smooth, then add egg plus vanilla, add some amount of flour to blend well. Put the mixture in a cookie shooter, give the baking machine the instructions on shapes of your preference, bake for about 10 or 15 minutes, and make the number of dozens that you desire. INGREDIENTS: 1c. Crisco 1(3oz. )cheese 1c. sugar 1eggyolk 1/2tsp. yolk 1/2tsp. vanilla 2 1/2 c.
sifted flour COST OF RAWMATERIALS DIRECT MATERIALS Unit cost 1 cup (3 oz) cream cheese $ 1.32 1 cup sugar $ 0.15 1 egg yolk $ 0.10 2 ½ cup shifted flour $ 0.375 TOTAL $ 1.945 MANUFACTURING OVERHEADS Variable costs Fixed costs (Per dozen) (Per month) Utilities $ 0.50 Other indirect materials and labor $ 0.75 Maintenance $ 500 Depreciation $2000 Supervision $ 2500 TOTAL $ 1.25 $5000 OPERATING EXPENSES Variable costs Fixed costs (Per dozen) (Per month) Sales commission $ 0.40 Shipping costs $ 1.10 Salaries $ 1000 Depreciation $ 300 Other $ 2700 TOTAL $ 1.50 $ 4000 (a) Total variable costs for a dozen of cookies=4.25+1.50=5.75 (b).
mark up on variable costs = 120% * 5.75 =6.90 © . Contribution margin for a dozen cookie =total sales- variable costs=6.90-5.75=1.15 (d) Break-even point=variable costs+ fixed costs+ o= (5.75+21000+o)*3 EXPENSES 1.Rawmaterials = $ 1.945 2. Manufacturing overheads =variable costs=$4.25 fixed costs=$5000 3. Operating expenses=variable costs 1.50 fixed costs 4000 Part 1 3 (a) Operating expenses in another name is period costs. They include expenses incurred at the time of selling, general and expenses incurred in running the business, interest and tax expenses 3(b) VARIABLE COSTS Utilities-you cannot determine how much you are going to spend on utilities, you always expect changes Other indirect materials and labor are variable costs because they depend on units of products Sales commissions are variable costs because they can increase or decrease concerning the number of sales Shipping costs usually depend on the number of products.
Henry, P. J. (2007). Sales Management and Motivation. New York: Harper collins
Horgren C, F. (2004). Cost Accounting a Managerial emphasis. New York: McGraw hill
Mentzer., J. (2008). Advanced Spreadsheet Modeling With Lotus. New York: Wiley and sons
Mentzer, J. T. (2008). Sales Forcasting Management. New Jersey: prentice hall
Milner, J. (2011). Accounting for Management. London: Black well
Robert, G. (1999, November wednesday). Business and Management , pp. 123-127.
Walther, L. (2010). Principles of accounts. New York: McGraw hill
William, C. (2008). the practice of marketing management. London: macmillan publishing.