University of Twente Student Theses


Cost price calculation for Zuivelhoeve – Finding the most appropriate method

Hofman, S.C. (2020) Cost price calculation for Zuivelhoeve – Finding the most appropriate method.

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Abstract:Having insight into the cost price helps in setting a good sales price in order to make a profit. Currently, Zuivelhoeve uses the direct costing method. This method is a calculation whereby only the variable costs are directly attributed to a product. Advantages of this costing model is that it is inexpensive to implement and is relatively simple. However, a disadvantage is that is not clear where the overhead costs come from. Because a number of changes has taken place in recent years, the current cost system do no longer correspond with the reality: there has been a change of management, a warehouse has been added and changes have been taken place in the factory. Furthermore, at this moment all overhead costs are thrown together and divided by the total number of products, while it can be advantageous to include the (indirect) costs in a more product-specific way. Therefore, the purpose of this thesis is to investigate what the most suitable cost price calculation is within Zuivelhoeve.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
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