COSTING PROJECT

Guided by :Prof. Arti Modi

Prepared by:

Anjali Moolrajani -66
Vinay Iyer -76
Ankit Lodhia - 86
Shalikram Padhya - 96
Vishal Satra - 106

Description of cake/ Introduction
Chocolate cake recipe is easy to follow and the ingredients are staples in most kitchens. The result is rich, moist, and absolutely delicious. Children will be licking their lips and picking up the last crumbs from their plates after trying a slice of this chocolate cake.
Depending on the financial budget one has to take decision .Do take your accountant views on this. All other legal and government related jobs have to be completed prior to operations. Few actions like registration, taxes and water and electricity connections, No objection for authorities to start bakery in that particular area. The Four Most Important M s of any business which are applicable to bakery business are .

Man

Bakery requires skilled bakers either you hire bakers or learn bakery skills from good professional bakery schools/institutes. Other s could be expert accountants/sales/procurement people if you plan to run bakery on a bit larger scale.

Money

Finances has to be arranged as first step open a current account in nearby bank. Check with the accountant on amount of money you would require for raw material, packaging material, fuel overheads. To avail finances you can source it from bank loans, personal savings, credit card loans, business loans, partners money or going public . One important point to note here is to that break even could be achieved through cost optimisation in all cost elements.

Machine

Machinery required for bakery production can be procured either new or second hand .For new start ups I would recommend to buy second hand equipment and once sales increases we can go for new and latest machinery . Few examples -oven, mixers, depositors, slicers and packing machines.

Material

Raw material has to be procured at most competitive price to maintain the margins. Basic ingredients for bakery are flour, fat, sugar, salts, butter , ammonium bicarbonate ,sodium bicarbonate , yeast etc . Whereas packing material are flexible packaging material like trays and carton boxes.

History of Cakes

Cakes are made from various combinations of refined flour, some form of shortening, sweetening, eggs, milk, leavening agent, and flavouring. There are literally thousands of cakes recipes (some are bread-like and some rich and elaborate) and many are centuries old. Cake making is no longer a complicated procedure.
Baking utensils and directions have been so perfected and simplified that even the amateur cook may easily become and expert baker. There are five basic types of cake, depending on the substance used for leavening.
The most primitive peoples in the world began making cakes shortly after they discovered flour. In medieval England, the cakes that were described in writings were not cakes in the conventional sense. They were described as flour-based sweet foods as opposed to the description of breads, which were just flour-based foods without sweetening.
Bread and cake were somewhat interchangeable words with the term "cake" being used for smaller breads. The earliest examples were found among the remains of Neolithic villages where archaeologists discovered simple cakes made from crushed grains, moistened, compacted and probably cooked on a hot stone. Today's version of this early cake would be oatcakes, though now we think of them more as a biscuit or cookie.
Cakes were called "plakous" by the Greeks, from the word for "flat." These cakes were usually combinations of nuts and honey. They also had a cake called "satura," which was a flat heavy cake.
During the Roman period, the name for cake (derived from the Greek term) became "placenta." They were also called "libum" by the Romans, and were primarily used as an offering to their gods. Placenta was more like a cheesecake, baked on a pastry base, or sometimes inside a pastry case.
The terms "bread" and "cake" became interchangeable as years went by. The words themselves are of Anglo Saxon origin, and it's probable that the term cake was used for the smaller breads. Cakes were usually baked for special occasions because they were made with the finest and most expensive ingredients available to the cook. The wealthier you were, the more likely you might consume cake on a more frequent basis.
By the middle of the 18th century, yeast had fallen into disuse as a raising agent for cakes in favour of beaten eggs. Once as much air as possible had been beaten in, the mixture would be poured into moulds, often very elaborate creations, but sometimes as simple as two tin hoops, set on parchment paper on a cookie sheet. It is from these cake hoops that our modern cake pans developed.
Cakes were considered a symbol of well being by early American cooks on the east coast, with each region of the country having their own favourites.
By the early 19th century, due to the Industrial Revolution, baking ingredients became more affordable and readily available because of mass production and the railroads. Modern leavening agents, such as baking soda and baking powder were invented.

Cost Sheet | | Particulars | Amount | Units | Per Unit Cost | Direct Materials | 54,560.00 | 750.00 | 72.75 | Direct Wages | 12,000.00 | 750.00 | 16.00 | Prime Cost | 66,560.00 | 750.00 | 88.75 | Indirect Materials | 7,500.00 | 750.00 | 10.00 | Factory Cost/Works Cost | 74,060.00 | 750.00 | 98.75 | Office Salaries | 12,000.00 | 750.00 | 16.00 | Printing & Stationery | 7,500.00 | 750.00 | 10.00 | Office Rent | 12,000.00 | 750.00 | 16.00 | Rates & Taxes | 6,000.00 | 750.00 | 8.00 | Audit Fees | 7,500.00 | 750.00 | 10.00 | COST OF GOODS PRODUCED/COST OF GOODS SOLD | 1,19,060.00 | 750.00 | 158.75 | Advertisement | 6,000.00 | 750.00 | 8.00 | COST OF SALES | 1,25,060.00 | 750.00 | 166.75 | PROFIT | 62,440.00 | | 83.25 | SALES | 1,87,500.00 | 750.00 | 250.00 |

Raw Materials Used

Materials | Quantity | Packet or kg | Flour (Maida) | 125 gms | 20rs/kg | Condensed Milk | Half Tin | 54rs/400gms | Coco Powder | 1 Table spoon | 32rs/50gms | Drinking Chocolate | 1 Table spoon | 30rs/100gm | Baking Powder | 1 Tea spoon | 12rs/50 gm | Spoon Soda | Half tea spoon | 2rs/50gm | Butter | 60 ml | 22rs/100gms | Vanilla Essence | 1 tea spoon | 16rs/10ml | Icing Sugar | 3 Table spoon | 16rs/100gm | Coconut powder | 2 Table spoon | 3rs |

Capital Requirements

1. Furniture – Rs 5,00,000 2. Refrigerators – Rs 32,000 3. Microwave Owens – Rs 15,000 4. Baking Ovens – Rs 20,000 5. Initial Deposit – Rs 1,00,000 6. Air Conditions – Rs 40,000

Other Expenses
Indirect Materials includes packing Boxes
Salaries consist of Rs 4,000 p.m to 6 employees.
Printing & Stationery includes normal stationery, candles
Advertising Includes samples and brouchers

Limitations

The following are the limitations we might face while selling the product

1. Perishable Good:-As cake being perishable goods if demand does not matches the total production, shop can suffer a loss. Although loss won’t be that much as we are selling cakes on daily demand basis.

2. Price Inflation:-If cost of the raw materials increases then the cost of cakes will also increase thereby increasing the costing of the cake.

3. Damages:-While producing the cake if we have damage it will increase the cost.