Start up presentation for windy coffee in managerial accounting

Start up presentation for windy coffee in managerial accounting

1. MANAGERIAL
ACCOUNTING
FOR WINDY
CAFE
TEAM MEMBERS: HIM PUTHROZA
KHUN MOLYNEATH
LEANG KIMLEAP
PICH DALIYA

2. TABLE OF CONTENT 1.Introduction
2.Cost Classification
3.Cost-Volume-Profit Analysis
4.Job Order Costing
5.Process Costing
6.Activity-Based Costing
7.Budgeting
8.Standard Costs & Variance Analysis
9.Conclusion

3. WINDY CAFE PROFILE
Located: In Phnom Penh, Cambodia
Offers: Foods and Beverages
Target Customers: Young professionals, university
students, and digital nomads who enjoy modern, cozy
spaces for work or meetups.
Mission :To serve exceptional coffee and pastries in a
minimalist, relaxing environment where people can
connect, create, and unwind
Goals: Achieve brand recognition, reach monthly sales,
and expand with one new branch

4. MANAGEMENT
FUNCTIONS
Setting pricing strategies
Marketing campaigns
Budgeting for supplies

Staffing
Equipment
Planning Controlling
Monitoring daily sales
Inventory levels
Employee performance to
reduce waste
Maintain cost efficiency.
Evaluating
Ethical
Considerations
Reviewing monthly financial
reports
Comparing actual vs.
budgeted performance
Adjusting strategies
accordingly
Use ethically sourced coffee
beans
Maintain fair wages for
employees
Reduce plastic use and
promote eco-friendly
packaging

5. ORGANIZATION CHART

6. COST
CLASSICFICATION
& COST
BEHAVIOR

7. HIGH-LOW METHOD EXAMPLE
(ELECTRICITY COST)

8. 04
JOB ORDER COSING

9. PROCESS COSING
05

10. ACTIVITY-BASED
COSTING
Machine Use (Coffee Maker)
Cost pool: $1,200
Cost driver: 600 drinks
Rate: $2 per drink
Cleaning & Maintenance
Cost pool: $600
Cost driver: 300 hours
Rate: $2 per hour
Order Taking & Serving
Cost pool: $900
Cost driver: 450 orders
Rate: $2 per order
Marketing & Promotion
Cost pool: $300
Cost driver: 100 campaigns
Rate: $3 per campaign

11. PRODUCT
COST
COMPARISON
TRADITIONAL CUP
Iced Latte: $2.40
Smoothie: $2.40
ABC COST
Ice Latte: $2,55
Smoothie: $2,90KEY INSIGHT / ANALYSIS
ABC METHOD SHOWS SMOOTHIES CONSUME MORE RESOURCES (PREP TIME,
MATERIAL USE, MARKETING).
TRADITIONAL COSTING HIDES TRUE COST DIFFERENCES BETWEEN PRODUCTS.
ABC PROVIDES MORE ACCURATE COST INSIGHT, USEFUL FOR BETTER PRICING
DECISIONS.

12. BUDGETING
Master Budget Overview (Q1: Jan–Mar)
Sales Budget:
January: 1,500 units × $3.00 = $4,500
February: 1,800 units × $3.00 = $5,400
March: 2,000 units × $3.00 = $6,000
Total Sales: $15,900
Production & Cost Budgets
Production Budget
Matches Sales: 5,300 units
Direct Materials Budget:
Coffee Beans = $0.60/unit
5,300 × $0.60 = $3,180
Direct Labor Budget:
0.1 hr/unit × $5/hr × 5,300 = $2,650
Overhead Budget:
$2,000/month × 3 months = $6,000
Cash Budget Summary
Opening Cash: $1,000
Total Inflows: $15,900
Outflows:
Direct Materials: $3,180
Direct Labor: $2,650
Overhead: $6,000
Other: $1,500
Total Outflows: $13,330
Ending Cash: $3,570
Budgeted Income Statement
Sales Revenue: $15,900
COGS: $9,830
Gross Profit: $6,070
Operating Expenses: $3,000
Net Profit: $3,070

13. STANDARD COST &
VARIANCE ANALYSIS The variance analysis for the quarter reveals several key differences between standard
and actual costs. The standard price for coffee beans was set at $0.60 per unit, but the
actual cost increased to $0.65 per unit, resulting in an unfavorable material price variance.
This increase was primarily due to higher supplier costs. For milk usage, the standard
quantity was 0.2 liters per unit, but only 0.18 liters per unit were actually used, indicating
slightly improved efficiency in milk usage.

14. CONCLUSION Windy Café applies managerial accounting tools to
monitor cost efficiency, control expenses, and
make strategic decisions. Through budgeting,
variance analysis, and CVP insights, the café can
maintain profitability and plan sustainable growth.