Question

You're in the business of supplying snacks to school canteens. The process involves procuring the ingredients (raw materials); cooking the snacks in a two-room place, for which you pay rent; and supplying the snacks to 50 school canteens, using your personal car. You have hired six workers, and you pay them on an hourly basis. How would accounting help you run this business?

Answer 1

Explanation:

Alright on accounting you might want to take into consideration the following

based on the production and delivery process

1. The cost of ingredient/raw material

2. the cost of rent for the two rooms

3. the cost of logistics for transporting the products

4. the payment per hour for 6 workers

With all the above well accounted for, it will help you have a perfect record of expenses and the total cost of production, you can then estimate the cost of producing a unit of the snacks.

You can then estimate the the revenue to be generated based on the price tagged on one unit.

Also, you can estimate the break even point based on a properly accounted business