Cost Classification Hersheys Chocolates - 2168 Words

Table of ContentsIntroduction1Part 111.1 Product Chosen - Hersheys Kisses.11.2 Cost Classification21.3 Explanations3Part 252.1 Production process.52.2 Type of product costing - Process costing62.3 Differences between management accounting (MA) and financial accounting (FA) - cost of inventory7Part 38References10Appendices12IntroductionThe Hershey Company (Hershey) was the chosen listed manufacturing company which to be discussed in this assignment. They are the largest North American manufacturer of quality chocolate and sugar confectionery products (The Hershey Company, 2009a). Part 11.1 Product Chosen - Hersheys Kisses. Hersheys Kisses are a type of chocolate manufactured by The Hershey Company. The bite-sized pieces of chocolate†¦show more content†¦That is, the machines total depreciation expense is the same each year regardless of volume produced on the machine. Occasionally, there are also curvilinear costs, for example cost of electricity, when market demand for Hersheys Kisses rises, electricity costs will increase at an increasing rate and vice versa. Besides that, most of the variable costs within Hersheys production department are thought to be controllable in short period of time; conversely, many fixed costs areuncontrollable in the short term (U.S Department of Education, 2007). For instance, Hersheys production managers could make decision on resources allocations which may influence the efficiency such as reduce direct labours overtime or control of the quantity of raw materials used for production; however, Hersheys production manager may not be able to influence the factory rental charged by the landlord. The value chain is a set of linked processes or activities which includes the upstream costs, downstream costs and the production costs or manufacturing cost (Blocher, Stout, Cokins, Kung, 2005). Some upstream costs found in production of Hersheys Kisses would be Research and Development costs that conducted by Hershey to produce higher quality Hersheys Kisses; wages of the designer on designing new packaging of Hersheys Kisses would be the designShow MoreRelatedMarketing Is Discovering And Satisfying Consumer Needs1116 Words   |  5 Pages Question #1 (6 Marks) The first objective in marketing is discovering and satisfying consumer needs. Explain the consumer insight that led to the re-launch of Hershey’s new chocolate bar. The consumer’s of the Take 5 chocolate bar were in their late teens and young adulthood who still enjoyed their brakes with tasteful treats. The target users were asked to give a comparison between the other treats that were available along with the Take 5. 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