Yummy Sdn Bhd Case Study
Topics: Management accounting, Management accounting, Cost, Cost, Costs, Costs / Pages: 4 (847 words) / Published: Aug 6th, 2017

Yummy Sdn.Bhd need fund to do research and development (R&D) in order to keep the delivery service to the customer for present and future need by providing the quality product. On the other hand, R&D is an important role and it is an opportunity to improve the development of the company. However, the Yummy Sdn Bhd had purchased the new machine for expanding their product lines purpose. Therefore, the company has no extra capital to allocate to R&D and they cannot borrow any fund from bank as well.
Based on this circumstances, since Yummy Sdn Bhd can’t find the fund in any external wayfinding, so the company can attempt to find fund through internal wayfinding. The first way suggest to the company is do the cost saving project. Yummy Sdn Bhd can try to suggest and provide a scheme to the supplier which can be get the win win solution. In this solution, Yummy Sdn Bhd and supplier should reach a consensus which is supplier should promise to supply a good quality material and lower price to Yummy Sdn Bhd. Yummy Sdn Bhd promise the supplier merely to order stock with the supplier in certain period but in big bulk quantity of the material. Moreover, by suggest this solution to the supplier,
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Designing an activity-based product costing system are required to identify the activity that happen in an organization, for example: activity analysis. After that, assign cost to cost centres or cost pools to each activity and need to determine the cost driver. Therefore, have a good and effective cost management, will manage the cost in the long term. Yummy Sdn Bhd can successful reduce the cost at the same time can continue to maintain the satisfaction of the customer. Activity-Based management (ABM) provide information on the cost of what activity and how well they are performed. The ABM can secure its markets through improve the efficiencies and effectiveness of Yummy Sdn

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