‭ iscussion Forum Unit 2‬

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‭BUS 5110: Managerial Accounting‬
‭Francilia Herrera‬
‭Dr. Pankaj B. Chaudhari‬
‭University of the People‬
‭November 27, 2023‬
‭Introduction‬

‭ he‬‭goal‬‭of‬‭commercial‬‭enterprises‬‭is‬‭to‬‭generate‬‭profits‬‭for‬‭their‬‭investors.‬‭They‬‭achieve‬‭this‬‭by‬
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‭charging‬‭more‬‭for‬‭their‬‭goods‬‭or‬‭services‬‭than‬‭it‬‭costs‬‭to‬‭produce‬‭or‬‭deliver‬‭them.‬‭Raising‬‭prices,‬
‭however,‬ ‭is‬‭only‬‭effective‬‭to‬‭the‬‭extent‬‭that‬‭customers‬‭are‬‭still‬‭prepared‬‭to‬‭pay‬‭for‬‭the‬‭goods‬‭or‬
‭services.‬ ‭Therefore,‬ ‭businesses‬ ‭need‬ ‭to‬ ‭keep‬ ‭their‬ ‭production‬ ‭costs‬ ‭under‬ ‭control‬ ‭in‬ ‭order‬ ‭to‬
‭maintain their profitability.‬

‭ roduction‬ ‭costs‬ ‭reflect‬ ‭all‬ ‭of‬ ‭the‬ ‭expenses‬ ‭associated‬ ‭with‬‭a‬‭company‬‭conducting‬‭its‬‭business‬

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‭while‬ ‭manufacturing‬ ‭costs‬ ‭represent‬ ‭only‬ ‭the‬ ‭expenses‬ ‭necessary‬ ‭to‬ ‭make‬ ‭the‬ ‭product.‬ ‭A‬
‭factory's‬‭production‬‭costs‬‭are‬‭the‬‭total‬‭expenses‬‭of‬‭doing‬‭business.‬‭Production‬‭costs‬‭refer‬‭to‬‭all‬‭of‬
‭the‬‭direct‬‭and‬‭indirect‬‭costs‬‭of‬‭business,‬‭such‬‭as‬‭labor,‬‭raw‬‭materials,‬‭consumable‬‭manufacturing‬
‭supplies, and general overhead.‬

‭ anufacturing‬ ‭costs‬ ‭are‬ ‭the‬ ‭expenses‬ ‭directly‬ ‭related‬ ‭to‬ ‭building‬ ‭the‬‭product.‬‭Both‬‭production‬
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‭costs‬ ‭and‬ ‭manufacturing‬‭costs‬‭must‬‭be‬‭included‬‭in‬‭the‬‭calculation‬‭of‬‭the‬‭per-item‬‭cost‬‭of‬‭doing‬
‭business.‬ ‭Both‬ ‭of‬ ‭these‬ ‭figures‬ ‭are‬ ‭used‬ ‭to‬ ‭evaluate‬ ‭the‬ ‭total‬ ‭expenses‬ ‭of‬ ‭operating‬ ‭a‬
‭manufacturing‬ ‭business.‬ ‭The‬ ‭revenue‬ ‭that‬ ‭a‬ ‭company‬ ‭generates‬ ‭must‬ ‭exceed‬ ‭the‬ ‭total‬‭expense‬
‭before it achieves profitability. (Beers, B., 2021, April 20. Investopedia).‬

‭ or‬ ‭this‬ ‭Discussion‬ ‭Forum,‬ ‭I‬ ‭have‬ ‭chosen‬ ‭The‬ ‭Clorox‬‭Co‬‭(Clorox),‬‭which‬‭is‬‭an‬‭American‬‭and‬

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‭global‬‭manufacturer‬‭of‬‭cleaning‬‭and‬‭disinfecting‬‭products‬‭for‬‭home‬‭and‬‭professional‬‭use‬‭as‬‭well.‬
‭The‬ ‭Clorox‬ ‭Company‬ ‭manufactures,‬ ‭and‬ ‭markets‬ ‭consumer‬ ‭products‬ ‭sold‬ ‭primarily‬ ‭through‬
‭grocery‬ ‭and‬ ‭other‬ ‭retail‬ ‭stores.‬ ‭The‬ ‭Clorox‬ ‭Co‬‭(Clorox)‬‭possesses‬‭a‬‭global‬‭portfolio‬‭of‬‭diverse‬
‭brands sold in more than one hundred (100) countries.‬

‭ he company's product portfolio by segment:‬

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‭37% Health and Wellness: Clorox, Clorox 2, Scentiva, Pine-Sol, Liquid-Plumr’ Tilex, Formula‬
‭409.‬
‭4% Professional Products: Clorox Healthcare, CloroxPro.‬
‭4% Vitamins, Minerals, and Supplements: Rainbow Light, Natural Vitality, NeoCell, Renewal‬
‭Life.‬
‭28% Household: Bags and Wraps. Glad.‬
‭8% Grilling: Kingsford.‬
‭8% Cat Litter: Fresh Step, Scoop Away, Ever Clean.‬
‭18% Lifestyle: 10% Food Products, Hidden Valley.‬
‭4% Natural Personal Care: Burt’s Bees‬
4‭ % Water Filtration: Brita‬
‭17% International: Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever‬
‭Clean, Burt’s Bee.‬

‭Summary: 17% International, 18% Lifestyle, 28% Household, 37% Health and Wellness.‬

‭According to the 2022 Annual Financial Statements Report (Dollars in millions).‬

‭1.‬ ‭Manufacturing Cost: Materials and labor.‬

‭●‬ ‭Cost of products sold is 4,562‬

‭2.‬ ‭Production Costs: Overhead.‬

‭●‬ ‭Selling and administrative expenses: 954‬
‭●‬ ‭Advertising cost: 709‬
‭●‬ ‭Research and development cost: 132‬
‭●‬ ‭Interest expenses: 106‬
‭●‬ ‭Income taxes: 136‬

‭Conclusions:‬

‭ rice‬ ‭is‬ ‭a‬ ‭method.‬ ‭The‬ ‭definition‬ ‭of‬ ‭cost‬ ‭accounting‬ ‭is‬ ‭the‬ ‭gathering,‬ ‭allocating,‬ ‭and‬
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‭interpretation‬‭of‬‭costs.‬‭At‬‭a‬‭glance,‬‭the‬‭Clorox‬‭Company‬‭2022‬‭Integrated‬‭Annual‬‭Report‬‭lists‬‭7.1‬
‭billion dollars in net sales, 9,000 employees, and 100 markets across 25 countries/territories.‬
‭Overhead‬‭and‬‭other‬‭production‬‭costs‬‭are‬‭classified‬‭as‬‭fixed‬‭costs‬‭since‬‭they‬‭don't‬‭change‬‭much,‬
‭but‬ ‭manufacturing‬ ‭costs‬ ‭Labor,‬ ‭and‬ ‭materials‬ ‭are‬ ‭considered‬ ‭variable‬ ‭costs.‬ ‭It‬ ‭is‬ ‭a‬ ‭global‬
‭operation‬ ‭with‬ ‭administrative‬ ‭and‬ ‭sales‬ ‭departments,‬ ‭manufacturing‬ ‭plants,‬ ‭research‬ ‭and‬
‭development‬‭centers,‬‭joint‬‭ventures,‬‭and‬‭a‬‭global‬‭headquarters.‬‭The‬‭Clorox‬‭Company‬‭is‬‭halfway‬
‭to‬‭its‬‭2025‬‭target‬‭of‬‭getting‬‭to‬‭know‬‭100‬‭million‬‭customers,‬‭having‬‭introduced‬‭innovation‬‭in‬‭28‬
‭categories.‬

‭References‬

‭ eers,‬‭B.,‬‭(2021,‬‭April‬‭20).‬‭Investopedia.‬‭“Production‬‭Costs‬‭vs.‬‭Manufacturing‬‭Costs:‬‭What's‬‭the‬
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‭Difference?”. Retrieved from:‬

h‭ ttps://www.investopedia.com/ask/answers/042715/whats-difference-between-production-cost-a‬
‭nd-manufacturing-cost.asp‬

‭2022 Annual Financial Statements Report (Dollars in millions). Retrieved from:‬

h‭ ttps://s21.q4cdn.com/507168367/files/doc_financials/2022/ar/CLX-2022-Integrated-Full-Repor‬
‭t.pdf‬

‭Walther, L. M. & Skousen, C.J. (2009). “Managerial and Cost Accounting”. Retrieved from:‬

h‭ ttps://library.ku.ac.ke/wp-content/downloads/2011/08/Bookboon/Accounting/managerial-and-c‬
‭ost-accounting.pdf‬