A cost volume profit analysis on a family owned pizza place.
Written in 2008; 2,587 words; 7 sources; MLA; $ 78.95
Paper Summary:
The paper explains the need for activities-based accounting even in small family owned businesses, specifically, a cost volume profit analysis. The paper analyzes the cost accounting of a small family owned pizza parlor. The paper provides data in tables and in a pie chart to evaluate budgets and sales costs, labor costs and competition.
Outline:
Introduction
Activities-Based Cost Accounting
Cost Volume Profit Analysis
Direct Materials Budget Monthly Average
Direct Labor
Competition
From the Paper:
"Family owned small businesses are frequently left out of the loop when it comes to managerial and accounting science as frequently the owner and or managers tend to believe that the limited level of operations is manageable via the use of traditional organizational means, or those employed historically. The result is frequently that the individual family business may be left unaware of the real situation with regard to cost accounting as well as overall broad health of the business at any given time. (Chua, Chrisman, and Sharma 19) Owners, and especially on site managers may and often are seriously over committed to day to day running of a business and may feel that added tools mean added tasks and responsibilities, and yet once they implement the use of certain cost accounting tools they may actually find that the time it takes to manage costs is actually cut down, as they are aware of the overall health of the business and the cost/profit per unit sold. (De Kok, Uhlaner, and Thurik 441)"
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