ADMS 3502 Lecture Notes - Lecture 6: Muesli, Standard Cost Accounting, Advantageous
13 Dec 2019
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Document Summary
To produce a box of muesli cereal, you can use 6 ingredients. It is customary in the muesli industry to classify it into 6 categories depending on the composition of the product. The industry is self regulated by the muesli manufacturers association which has developed a set of product categories with recipe regulations. The regulations require that products are labeled appropriately. For example, a product referred to as blueberry muesli may only contain blueberries, wheat and oats and no other ingredients. Mma standardized sizes and regulates that products must be sold by weight and only two sizes of variants may bee produced 500g and 1kg. 2 sizes and 6 product categories make for a total of 12 products sold in the market. All muesli cereals must be sold in standardized packaging comprising 2 components: an inner, sealed plastic bag and an outside cardboard box, packing components also come in 2 sizes. Ingredients prices are determined by the global commodities market.
