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This template guides a feedback report on Assignment 1, a simulated production process. Students conduct a lab experiment, submitting a structured report after downloading a recipe, buying ingredients, manufacturing, and calculating costs (prime, conversion, total). They estimate a selling price, profit, and conduct market analysis. The template includes sections for ingredients, equipment, costs, and analysis, structuring understanding of manufacturing costs and market competitiveness. This assignment offers practical cost accounting and business decision-making experience, simplifying cost calculation and market analysis in a practical context. It provides a step-by-step guide.
Tipologia: Esercizi
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Surname: Usmiani Name: Ludovica Matricola no.: 118102 Brief description: The students (individually) will be required to carry out a simple “laboratory experiment” based on a simulated production process and subsequently submit a structured feedback report. This assignment will weigh 10% against the final mark. Deadline: 31 October 2023 To be delivered: by submitting the structured feedback report through the moodle elearning platform of the course. Full Instructions below (Students are required to use this template to prepare their report) Step 1 Download the recipe at the following link:
Note: List the ingredients you purchased, their quality (use the brand as a proxy for that), the quantity, and the purchase price. Add any further information you may find useful to describe this step of the process. The ingredients I purchased are:
Add any further information you may find useful to describe this step of the process. For direct materials I used the purchasing price of the ingredients. purchasing price quantity purcahsed quantity needed material cost eggs 1,99 4 4 1, guanciale 5,04 200 200 5, pecorino 1,95 100 40 0, grana padano
pasta 0,58 500 320 0, black pepper
water 0,00361 1 3 0, salt 0,37 1 0,02 0, 9, 4 2, I was able to prepare four servings with these materials, and they were evenly distributed among each serving. To find the cost of direct materials for a single serving, you can simply divide the total cost by 4. Therefore, the cost of direct materials for one dish is: direct labor monthly wage monthly working hours hourly wage hours worked labor cost 1850 160 11,5625 0,5 5, For direct labor, I used the average wage of a cook in Italy (https://www.corriere.it/cook/news/cards/quanto-guadagna-davvero-chef/quanto- guadagna-cuoco-italia.shtml), as I assumed that I would be preparing the recipe in a restaurant and then selling it. Also in this case the labor is equally distributed between the different dishes, so it will be divided by 4. For 1 dish, the cost will be: 1,
Summing direct materials and direct labor we can get the prime cost: 3, purchasing price estimated number of uses cost per use cutting board
knife 3,5 1095 0, pan 58,9 260 0, plate 1,35 730 0, ladle 1,5 520 0, pot 41,9 1095 0, bowl 3,95 520 0, hand whisk 4,95 60 0, 0, For calculating overhead costs, I began by estimating the cost of using the equipment. I assumed that I would use the cutting board, the knife, and the pot once a day for 3 years. I use the pan less frequently, so I estimated one use per week for 5 years. The plate sees two uses a day, and I estimated that it would last for one year, because it's fragile and could easily break. For the ladle and the bowl, I assumed two uses a week for 5 years. The hand whisk is used once a month for 5 years. The final cost of my equipment for one use amounts to €0. 0, I also considered the cost of gas and electricity. I cooked the pasta for 8 minutes, and it took 10 minutes for the water to boil, so the gas was on for a total of 18 minutes. The stove consumes 3 kW (equivalent to 0.18 m3) per hour. The cost of 1 m3 of gas is €0.396386. Therefore, the cost of gas was calculated as follows: I also needed to keep the light on for the 30 minutes I spent cooking. The cost for 1 hour of lighting is €0.02, so for 30 minutes, it amounts to €0.01. overheads cost cost for 1 dish equipment 0,373788637 0, gas 0,021404844 0, electricity 0,01 0, 0,
Add any further information you may find useful to describe this step of the process. To conduct the market analysis, I assumed that I was in a restaurant in Siena. I selected 10 restaurants located in the city center and researched the price of their Carbonara dishes. price osteria le sorelline 10 osteria il carroccio 9 trattoria cane e gatto 10 antica trattoria papei 9 la vecchia taverna di bacco 12 osteria il ghibellino 12 osteria nonna gina 10 osteria permalico 8 osteria pizzeria il vicolo 8, ristorante taverna da cecco 11 average price 9, The average price I got from the analysis is 9,95€. There weren’t any offers or discounts in the restaurants that I found. Step 8 If necessary, make changes to the selling price based on the r market analysis results and/or hypothesize the methods of selling the product (e.g., in a restaurant, through food delivery, etc.). Final Selling price: 9€ Is the price different from what you indicated in Step 5? If yes, provide the main motivations for making this change. Add any further information you may find useful to describe this step of the process. The initial price I calculated was relatively low compared to the results of the market analysis. Therefore, I decided to raise the price slightly but still keep it below the average prices of other restaurants to maintain a competitive edge. It's important to note that I had already added a 50% markup, which is quite substantial, allowing for a profit even with the lower price. The adjusted price is now set at €9. Step 9
Additionally, explain: