Upload
yiyongsup
View
502
Download
3
Embed Size (px)
DESCRIPTION
Citation preview
Group 5
Nokyang Ganeung Tiba two Chicken
Management Accounting for Tiba Chicken
Contents
Introduction
Process
Cost Classifications
Cost-Volume-Profit Analysis
Standard cost
Master Budget
Proposal of New Set Menu
12
34
56
7
Introduction
baTi+
of the Customer
by the Customerfor the Customer
Delivery
Laughter & Joy
티끌모아 태산
바지런하다
Gyeonggi-do Uijeonbu-si Ganeung 1-dong
Phone Number
Nokyang Ganeung Tiba two Chicken
Location
Name
031)829-9392
500m200mCompetitors5 12Competitors
Visit & Interview
Process
Select business Contact storeBasic industryinvestigation
Data request & Data collection Data analyze
Proposal & suggestionProblem analysis
Report writing & Presentation
Process
Cost Classifications
Variable costsFixed costs
Direct costIndirect cost
Differential costSunk costOpportunity cost
Direct MaterialsDirect labor
Manufacturing Overhead
Non-manufacturing costsMarketing or selling costs
Administrative costs
Recap Cost Classifications3
Period costs(expensed)
Product costs(inventoriable)
OtherClassifications
DM
VMOH
FMOH
Ues
Those materials that become an integral part of the product andthat can be conveniently traced directly to it.
3 DMCost
Classifications
Direct 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
VMOH
Manufacturing costs that cannot be traced directly to specific units produced
Proportional to activity
Manufacturing Overhead
3Cost
Classifications
Breading ch1Packed RadishChicken vinyl (package)Sauce caseSoy sauceFrying oilWipesNew Chicken BoxRice cakeBetter Mix
Tiba SauceMustard SauceNew sunsal BoxTiba saltShopping bag boxCoke VinylSunsal teriyaki SauceAluminum foilTiba Shopping bagOnly one box
FMOH
Flyers (marketing)Motorcycle oilElectricity taxGas taxWater taxRentDeliver man wage
Constant in total
Manufacturing Overhead
Manufacturing costs that cannot be traced directly to specific units pro-duced
3Cost
Classifications
Cost-Volume-Profit Analysis
Revenue is based on an rough estimate that the shop owner provided. Because of the lim-ited knowledge on monthly 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)
Plans to trigger Higher sales
Surprisingly low BEPTiba is quite flexible in its sales!More than half of its sales is pure profit
it uses only 85% of its direct materials pur-chased, it is desirable for Tiba to make more efficient utilization
purchase
uses
BEP
surpass the BEP after selling about 500 sets of chicken in a quarteraverage sales is about 1800
it would be able to bring the number up to 2000 with promotions
that won't 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 lim-ited knowledge on monthly 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)
Plans to trigger Higher sales
monthly promotionssell chickens at a lower price
Specific day of the monthstimulate purchase.
Standard cost
Assumption
Next quarter budget was analyzed by standard cost of current quarter budget
PriorQuarter
NextQuarter
CurrentQuarter
Problem analysis
⇒ Expected usage > actual usageNeed to purchase lower quantity of
⇒ Expected price > actual priceCan generate marginal cash flow
DMQV & VOEV
DMPV & VOSV
favorable unfavorable
alcohol&beveragechicken
VMOH
favorable unfavorable
2/43/4
4/44/4chicken chicken
chicken chicken chicken
VMOH
VMOH
VMOH
VMOH VMOH
alcohol&beverage
alcohol&beveragealcohol&beverage
alcohol&beverage
alcohol&beverage
2/43/4
4/42/4
3/44/4
⇒ Expected usage < actual usageThere can be lack of
⇒ Expected price < actual priceThere may be problem with cash flow
AQ * AP AQ * SP SQ * SPPrice
Varance
Quantity
Variance
chicke
n
2,129 * 3,775
= 8,036,000
2,128 * 4,344
= 9,248,376
2,180 * 4,344
= 9,469,500
1,212,37
6
(F)
221,124
(F)
alcoho
l &
bevera
ge
3,048 * 726
= 2,214,000
3,048 * 517
= 1,575,816
3,528 * 517
= 1,825,816
638,184
(U)
249,584
(F)
VMOH134 * 22,141
= 2,966,900
134 * 17,643
= 2,364,162
152 * 17,643
= 2,681,700
602,738
(U)
317,538
(F)
(SQ, SP from 1 quarter)
F : favorable varianceU : unfavorable variance
2/4 2011
(SQ, SP from 2quarter)
AQ * AP AQ * SP SQ * SPPrice
Varance
Quantity
Variance
chicke
n
2,061 * 4,062
= 8,372,700
2,061 * 3,775
= 7,780,275
2,129 * 3,775
= 8,036,000
592,425
(U)
255,725
(F)
alcoho
l &
bevera
ge
2,128 * 701
= 1,490,900
2,128 * 726
= 1,544,928
3,048 * 726
= 2,214,000
54,028
(F)
669,072
(F)
VMOH117 * 15,253
= 1,784,600
117 * 22,141
= 2,590,497
134 * 22,141
= 2,966,900
805,897
(F)
376,403
(F)
F : favorable varianceU : unfavorable variance
3/4 2011
F : favorable varianceU : unfavorable variance
(SQ, SP from 3quarter)
AQ * AP AQ * SP SQ * SPPrice
Varance
Quantity
Variance
chicke
n
1,967 * 3,995
= 7,867,500
1,967 * 4,062
= 7,989,954
2,061 * 4,062
= 8,372,700
122,454
(F)
382,746
(F)
alcoho
l &
bevera
ge
2,820 * 674
= 1,902,000
2,820 * 701
= 1,976,820
2,128 * 701
= 1,490,900
74,820
(F)
485,920
(U)
VMOH149 * 16,905
= 2,467,600
149 * 15,253
= 2,272,697
117 * 15,253
= 1,784,600
194,903
(U)
488,097
(U)
4/4 2011
Master Bud-get
DM(chicken) Total purchase 8,337chickenQuarter average purchase 2,084chicken
Total purchase price 33,745,700wonQuarter average purchase price 8,436,425won
unit price 4,048won
DM(Drink) alcohol+beverageTotal purchase 11,524Quarter average purchase 2,881
Total purchase price 7,432,300wonQuarter average purchase price 1,858,074won
unit price 645won
VMOHTotal purchase 552Quarter average purchase 138
Total purchase price 9,900,800wonQuarter average purchase price 2,475,200won
unit price 17,936won
2011 total budget
2012 ¼ Master budget
Drink(alcohol+beverage)Quarter average purchase 2,881+(maximum-minimum 1,688) = 4569 purchase
645(unit price) * 4569 = 2,947,005won
ChickenQuarter average purchase 2084chicken+(maximum-minimum 213chicken) = 2297chicken purchase
4048(unit price) * 2297 = 9,298,256won
VMOHquarter average purchase 량 138+(maximum-minimum 35) = 173 purchase
17,936(unit price) * 173 = 3,102,928won DL & 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 =
3,650,000won
2012 ¼ Master budget
2012 ¼ Quarter Budget total cost DM Budget(9,298,256won) + Drink Budget(2,947,005won) + VMOH Budget(3,102,928won) + DL Budget(11,700,000won) + FMOH Budget(3,650,000won) =
30,698,189won Month average sales 12000000won * 3 = quarter average sales 36000000won – 1/4quarter Budget total cost(30,698,189won) = expected 1/4quarter profit 5,301,811won
2012 ¼ Master budget
2012 ¼ Master budget
Can lower budget311,605won
+20
-51 -31
Drink(alcohol+beverage)Quarter average purchase 2,881+(maxi-mum-minimum 1,688) = 4569 purchase
645(unit price) * 4569 = 2,947,005-won
ChickenQuarter average purchase 2084chicken+(max-imum-minimum 213chicken) = 2297chicken purchase
4048(unit price) * 2297 = 9,298,256wonMax = ¼ quarter 2,180 * 4344(won) = 9,469,500won= 9,469,920won
Lack of 171,664won in budgetWe should add 200,000won in budget
Max = 2 quarter 3,048 * 726(won) = 2,214,000-won
Using 2,435,300won budgetWe can lower 511,605won
+Max10%
2012 ¼ Master budget
Labor Cost 2 part time worker
PM12:00 ~ Am 1:00 13hour5000won/hour, 30 day
2*13*5000* 30= 11,700,000won
It’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 2:00~4:00
If we lower this labor costWe can make More profit!!!
Pro-posal
New Set Menu
Set Menu?!
Beer + Chicken
Tiba Two Chicken indicates, the set must be consisted of more than 2 chick-ens
Best Matching!!!
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 least exceed 11000 won in profits
per set.
Analysis
11000
2 chickens + 1 draft beer=3800*2+2212.5=7600+2212.5=8812.58812.5+11000=19812.5
The cheapest price for our new set menu would be
Thinking of combinations of which chicken and what beer to include
The most effective butcheapest price for our Set Menu
19812.5
To Make
22000 won
23800 won
Suggestion
2 draft beer
2 Spice Chicken
Sunsal Chicken + Sunsal Soy Sauce Chicken
2 draft beer
EQ Seasoned Spicy Chicken
Garlic Soy Sauce Chicken
1 Soju
20800 won
2 Spice Chicken
1 draft beer
20000 won
Do y
ou
wan
t to
bu
y?!
Brand New Set Menu