Yen Yummy Bakery Essay
Yen Yummy Bakery.
Yen Yummy Bakery is a small bakery situated in my neighborhood which provide the entire neighborhood with fresh bread and other baker desserts. This bakery emphasizes in providing its customers with fresh, healthy, and high quality bread and desserts. It insist on the principle of not selling overnight products to its customer. The success of this bakery do not only depends on its customers, but also on its costs management. The costs associated in running this bakery can be classified as fixed costs and variable costs, where variable costs change with production level.
Variable costs of Yen Yummy bakery are those costs that increases or decreases in direct proportion to how much product it bakes, whereas, fixed costs are …show more content…
Materials and supplies such as bags, twist ties, labels, stickers, ribbons, tape, plastic rap and foil are also variable as these materials and supplies move along with quantity of production.
Labor costs which is also know as payroll costs is the salary of the employees. This costs can be consider constant, but can also varies depending if the bakery take in more employees or layoff. Salary increase also makes the costs varies for a short time.
Costs of electricity is vital in bakery management as most of the equipments used in the kitchen uses substantial power. For example, oven, mixer, fryer, etc are all bakery equipments using heavy electricity and therefore, the costs of electricity must be accounted for.
The fixed costs associated with Yen Yummy bakery is the costs of equipment such as ovens, mixers, steamers, pocket divider, etc. Another important costs that Yen Yummy bakery incur which is also classified as fixed is the costs of renting its premises. The bakery pays its rent every quarterly.
From the above costs incurred by Yen Yummy bakery, the costs of ingredients, the costs of supplies and packaging, labor or payroll costs are all product costs. Whereas, the costs of electricity, equipments, rent costs, the costs of equipment repair are all periodic
Yen Yummy Bakery is a small bakery situated in my neighborhood which provide the entire neighborhood with fresh bread and other baker desserts. This bakery emphasizes in providing its customers with fresh, healthy, and high quality bread and desserts. It insist on the principle of not selling overnight products to its customer. The success of this bakery do not only depends on its customers, but also on its costs management. The costs associated in running this bakery can be classified as fixed costs and variable costs, where variable costs change with production level.
Variable costs of Yen Yummy bakery are those costs that increases or decreases in direct proportion to how much product it bakes, whereas, fixed costs are …show more content…
Materials and supplies such as bags, twist ties, labels, stickers, ribbons, tape, plastic rap and foil are also variable as these materials and supplies move along with quantity of production.
Labor costs which is also know as payroll costs is the salary of the employees. This costs can be consider constant, but can also varies depending if the bakery take in more employees or layoff. Salary increase also makes the costs varies for a short time.
Costs of electricity is vital in bakery management as most of the equipments used in the kitchen uses substantial power. For example, oven, mixer, fryer, etc are all bakery equipments using heavy electricity and therefore, the costs of electricity must be accounted for.
The fixed costs associated with Yen Yummy bakery is the costs of equipment such as ovens, mixers, steamers, pocket divider, etc. Another important costs that Yen Yummy bakery incur which is also classified as fixed is the costs of renting its premises. The bakery pays its rent every quarterly.
From the above costs incurred by Yen Yummy bakery, the costs of ingredients, the costs of supplies and packaging, labor or payroll costs are all product costs. Whereas, the costs of electricity, equipments, rent costs, the costs of equipment repair are all periodic