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COST MANAGEMENT PRACTICES OF SELECTED

BAKERIES IN TAYABAS CITY

Fabie, Jersie Mae G.

Jardin, Reicel P.

College of Business Administration

Southern Luzon State University

2018-2019

1998 Birthplace: Lucena City Permanent Address: Brgy. Tayabas City Contact Number: 0912-631-8027 Email Address: jersiemaefabie22@gmail. Fabie Birthday: December 22. Wakas. ii BIOGRAPHICAL SKETCH Name: Jersie Mae G.com Educational Background: School/University Inclusive Years Honors/Awards Wakas Elementary School 2005 – 2011 Third Honorable Mention Luis Palad National High School 2011 – 2015 - Southern Luzon State University 2015 – Present Academic Affiliations: Junior Philippine Institute of Accountants – Member .

com Educational Background: School/University Inclusive Years Honors/Awards Ilasan Elementary School 2005 – 2011 - Luis Palad National High School 2011 – 2015 - Southern Luzon State University 2015 – Present Academic Affiliations: Junior Philippine Institute of Accountants – Member . Ilayang Ilasan. Tayabas City Contact Number: 0948-645-4246 Email Address: reiceljardin773@gmail. Jardin Birthday: November 16. iii BIOGRAPHICAL SKETCH Name: Reicel P. 1998 Birthplace: Tayabas City Permanent Address: Brgy.

CPA Research Adviser . BABIA. the hard and soft copies are one and the same. HERMINIA E. iv Program/Project Planning and Administrative Support CERTIFICATE OF AUTHENCITY FROM ADVISER This is to certify that the undersigned has thoroughly reviewed the accompanying submissions in the form of soft and hard copy of the work entitled COST MANAGEMENT PRACTICES OF SELECTED BAKERIES IN TAYABAS CITY by JERSIE MAE G FABIE and REICEL P JARDIN and that as far as our knowledge.

CPA MAY ANNE C. CPA Member Member MARIBETH B. has been prepared and submitted by JERSIE MAE G. this research paper entitled. who are hereby recommended for oral examination. “COST MANAGEMENT PRACTICES OF SELECTED BAKERIES IN TAYABAS CITY”. DBA Date Dean . HERMINIA E. VILLON. JARDIN. ELLAGA. MBA Research Adviser Approved in partial fulfilment of the requirements for the degree of Bachelor of Science in Accountancy by the Oral Examination Committee. MM Chairperson Approved in partial fulfilment of the requirements for the degree of Bachelor of Science in Accountancy. BABIA. _________________ JOANNA PAULA A. CPA. RANIEL R. CPA. RAMILO. FABIE and REICEL P. CALUBAYAN. v APPROVAL SHEET In partial fulfilment of the requirements for the DEGREE OF BACHELOR OF SCIENCE IN ACCOUNTANCY.

JMGF This piece of work I wholeheartedly dedicated to my parents Nanay Norcel and Tatay Reynaldo. to all the people who contributed for the success of this study. to my two younger brothers. and most importantly. to my choir mates. Fabie and Flomencio N. . who are supporting me in all aspects. our research adviser. RPJ . Fatima. to my partner and a friend of mine Jersie. Imee G. who share her knowledge and for understanding me. who showed unconditional understanding and patience. for the guidance throughout my life. and first of all is to our almighty God for the reason of happening all this. . to my second family. and to my Grandparents Nanay Susan and Tatay Efren who are always on my side. to Ma’am Babia. Reicel. to our God almighty. for her valuable advice. my creator. Fabie for their undying love and support throughout my life. vi DEDICATION This research is dedicated to my beloved parents. to my siblings Renalyn. gave me much inspiration and for supporting me. Paulo and Jayvee. my source of wisdom. Tabi Family to all of my friends who are always motivating me and who are always with me through thick and thin especially to my best friend. Ransell and Reiven that gave me a happiness and for trusting me. to my thesis partner.

chairperson. for lending their time. Mario Reyes. Herminia E. Babia. Villon. countless help and prayers for the success of this study and for being with them at hard times and delight. May Anne Calubayan. guidance and support. and to their for the permission granted to get all the necessary details and data needed and to their workers who assisted the researchers in getting the informtion. Jocelyn Sayson and Mr. Myra Iris Capila Reyes. To Mrs. Raniel R. Mrs. Prof. Joana Crizella Gizaldo. comments and suggestions through the oral defense that provided a great help to improve more this research. . To researchers’ friends and bestfriends. respondents. and for without them this challenging work would not have been possible and accomplished: Prof. Clarice. for their prayers and support with a special mention to their beloved friends. their adviser. To BS Accountancy IV-B Family. Mr. Airene and Nica who have been so supportive along the way of doing their thesis. Ramilo and Mrs. Mrs. Mr. for her countless advice and endless guidance to this study. for their encouragement. Cristine. To researchers’ families specially to their parents for their endless prayers. Jessa. Maribeth B. members of the Oral Defense Committee. Efren Sayson. vii ACKNOWLEDGMENT The researchers would like to express their deepest thanks and gratitude to the following persons who in one way or another contributed and extended their valuable assistance in the preparation and completion of this research study.

viii Above all. strength. . to our God Almighty for His endless blessings. health and wisdom. guidance.

Keywords: Cost Management. it aimed to accomplish the following: (1) To determine the business profile of selected bakeries in terms of its historical background. the equipments they are using in good condition and the man power are of quality work. as the three broad categories of product costs. capital structure and technical structure. Reicel P. the researchers therefore conclude the following : (1) Both bakeries are liquid and can meet their current obligation (2) Based on the 2016 sales of Calle Maior Bakery & Pasalubong. They can assign it based on the total monthly production. The descriptive design has employed in the study. the respondents identified: (1) direct materials. Adviser: Prof. (2) Faulty estimates of manufacturing overhead (3) Defective bread products. organizational structure. In manufacturing their products. Herminia Babia The main objective of this study is to determine and assess the cost management practices of selected bakeries in Tayabas City. tables and illustrations. direct labor and factory overhead (3) To evaluate the financial profitability of selected bakeries for the past three (3) years. Specifically. Based on the findings and the results of the analysis. (2) The owners should know how will they allocate the manufacturing overhead to the production. ix ABSTRACT Title: Cost Management Practices of Selected Bakeries in Tayabas City Researchers: Fabie. The researchers conducted a personal interview with owners of the two (2) bakeries and workers guided by interview guide questionnaire. These design focused in describing the cost management practices of Calle Maior Bakery & Pasalubong and Mendoza Bakery for the past three (3) consecutive years. With the findings presented and the conclusions reached. All necessary and available data was presented in a narrative form. the establishment of bakeries nearby lowers the sales. the researchers humbly recommend the following: (1) The owners should make a cost sheet for them to know if they are gaining profit or not with the product they are producing. Bakery . Defective products can’t be avoided but it can be lessen with some precautionaries. in figures. or there is a uniform amount assigned in each product. Mendoza Bakery’s sales is near constant because they are in public market (2) The owners of Calle Maior Bakery & Pasalubong and Mendoza Bakery can be both considered successful because they managed their business to grow. (4) To know the common problems encountered by the business regarding to its cost management practices. (3) The owner should lessen their defective product by way of making sure that all necessary raw materials are of standard class. The common problems encountered by the two (2) bakeries on its costing practices are: (1) Both bakeries have no formal cost sheet. Jardin. Jersie Mae G. (2) To know the costing management practices applied by selected bakeries in Tayabas City as applied to direct materials. (2) direct labor and (3) manufacturing overhead.

……….1 Background of the Study………………………………………………………………………….5 Chapter II –Review of Literature Related Literature………………………………………………………………………………….……….……….……….44 .7 Conceptual Framework……………………….………………………………v Acknowledgement………………….………………………………………………….……….………………………iv Dedication……….……….……….……….………..………. x TABLE OF CONTENTS Biographical Sketch……….……….4 Scope and Limitation…………………………………………………………………………….……….vi Abstract………………………………………………………………………………………….……….ii Approval Sheet……….2 Statement of the Problem………………………………………………………………………….……….43 Research Paradigm ……………………………………………………………………….……….3 Significance of the Study…………………………………………………………………………...……………..……….……….……….…….………..……...……….…….……….viii Chapter I – Introduction Introduction……………………………………………………………………………………….………………….…….4 Definition of Terms………………………………………………………………………………..

.………...71 Cost Management Practices Financial Performance Problems Encountered . Profile of the bakery……………………………………………………………..... Technical Structure I..46 Financial Ratios……………………………………………………………………….... Physical Structure…………………………………………………………... Organizational Structure…………………………………………………………. Capital Structure……………………………………………………………………….…45 Research Instrumentation……………………………………………………………………….……….….45 Unit of Analysis/Respondents………………………………………………………………. Technical Process……………………………………………………………...…. Historical Background I.47 Chapter IV – Results and Discussion Business Profile A..48 B....45 Research Design………………………………………………………………………...…….51 C. xi Chapter III – Methodology Locale of the Study………………………………………………………………………..……62 II.54 D.

Conclusions and Recommendations Summary……………………………………………………………………….……………..110 Recommendations………………………………………………………………………...……..………………105 Conclusions……………………………………………………………………………. xii Chapter V – Summary.……...104 Findings……………………………………………………………………….....111 Bibliography Appendices Financial Statements Job Order Cost Sheet Letter Interview Guide Questionnaire Pictures ...

………………………………..55 2.59 5 Vicinity Map .Calle Maior Bakery & Pasalubong……………..……. Capital Structure ..………………….……………….51 3 Map of Tayabas City…………………………………....56 3...Mendoza Bakery…………………………………….97 Illustration 1 Organizational Structure – Calle Maior Bakery & Pasalubong……………………….. Comparative Income Statement ..74 ....Mendoza Bakery………………………………………. Comparative Income Statement .Calle Maior Bakery & Pasalubong……………………………………. Capital Structure ....……..………………………..………..70 13 Costing System – Calle Maior Bakery & Pasalubong and Mendoza Bakery………………………………….Calle Maior Bakery & Pasalubong…….…….Calle Maior Bakery & Pasalubong………………………………….60 6 Vicinity Map .63 8 Plant Layout (Office Area) .. Total Monthly Production…………………………………..Calle Maior Bakery & Pasalubong……………………….……….…………….67 12 Bread Making Process…………………………………. xiii LIST OF TABLES AND FIGURES Tables 1.77 4.Mendoza Bakery………………………………….96 5..51 2 Organizational Structure – Mendoza Bakery……………………………………………...65 10 Plant Layout (Storage Area) ..Mendoza Bakery…………………………………….Mendoza Bakery……………………………………………………......…….66 11 Plant Layout (Working Area) .…………………………………58 4 Map of Poblacion of Tayabas City…………………………………..………………….61 7 Plant Layout (Office Area) ..64 9 Plant Layout (Working Area) – Calle Maior Bakery & Pasalubong………….