Examine the principal activities and costs of Apollo Food Holdings

APOLLO FOOD HOLDINGS BERHAD

1.Apollo Food Holdings Berhad is the company which is manufacturing composite chocolate confectionery products and layer cakes located in Malaysia. Company’s product mainly split up into two: Swiss roll, Layer cake, Chocolate Wafer products and Chocolate Layer Cake products. As a Malaysian outstanding producer of the Layer Cake and Chocolate Confectionery Products, Organization penetrating International market in countries like Philippines, Indonesia, Hong Kong, Vietnam, Japan, Taiwan, Taiwan, Mauritius, Taiwan, China, Maldives, Thailand, India, Singapore. The organization permanently makes great efforts to attain, to determine and assign the resources needed. The company covers all aspect like: understanding customer, analysing market, analysing competition, doing research on distribution, defining marketing mix and financial analysing. APOLLO aims to consistently satisfy the client expectations, demands applying new facilities, technique.

2.The Financial Controller issues financial manual, which is significant in creating accounting action plans. His job needs responsibility for assuring that all accounting allocations are appropriately made and documented. He is responsible for setting up and performing internal controls over the company’s accounting and financial procedures. This includes reviewing accounts receivable reports and taking part in activities like planning, directing and motivating, controlling and decision making.

Planning

Planning is commonly called strategic planning or corporate planning.

Organization’s Financial Controller usually has his own strategic plan for accounting performance in a Company. The main job of Financial Controller in Long-term Planning is to gather the information and to use a strategy which will give a chance for a company to continue the business in a long time base.

Directing and motivating

Financial Controller has to observe daily basis performance of the employees and try to make them feel valued and inspired, which can lead to the fluently operating Company. Optimistic and also productive atmosphere in a work place demands professional skills of Financial Controller, who can stimulate the workers by giving advices, make them feel helpful and by showing the correct way of achieving their goals. Furthermore, he can make training programs in order to have a beneficial outcome for the Organization.

Controlling

Following up the control function, Financial Controllers look up to assure that the plan is being succeeded. Response, which sounds whether procedures are being followed, can be the clue to efficient monitoring. Usually this responsiveness is assured by particular records of different kinds. After the checking the report He makes sure that the weakness are going to be improved and analyze which part should be increased in a deep consideration.

Decision making

In order to have a success in a business, it is really important to know the significance of decision making. Moreover, Financial Controller has to make decision not only for present time, he should consider how the decision will impact future of the Company. For that reason, Financial Controller, collect the information from all the sources, and tries to make the best decision in managerial accounting .

APOLLO Layer Cake

3. Principal Activities of APOLLO FOOD HOLDINGS BERHAD is Management of Companies and Enterprises-Sugar and Confectionery Product Manufacturing. The principal activities of APOLLO are investment holding and provision of management services to subsidiaries. The principal activities of the subsidiaries are manufacture of and trading in compound chocolates and chocolate confectionery products and cakes.

Direct Material

Direct materialsare raw materials that can be directly traced to the manufactured product. Direct Materials of the APOLLO Layer Cake are the ingredients that are used during the process of making the product. Two of them are: Wheat Flour and Eggs. These ingredients are directly used to manufacture the APOLLO Layer Cake.

Direct Labour

Direct labor describes workers that are directly involved in the production of goods or the performance of services.Moreover, it is the cost of paying employees to make the APOLLO Layer Cake. Company carefully estimates how much direct labor goes into each Layer Cake made that is, how long each kind ofworkertakes to do the job. Pastry Chef and Cake Decorator are the labours who directly involved in the production of Layer Cake.

Manufacturing Overheads

Indirect materials are items that are used in the production process for goods and services, but are not part of the main raw materials for the products or services created. Indirect Materials that are used to manufacture the Layer Cake: Cleaning materials and Measuring Cups.

Indirect Labour is the cost of labor that company needs to make products but they are not directly involved in production work. Indirect Labours who are not directly involved in production of Layer Cake are: Cleaners and Maintenance workers.

Non-manufacturing cost

Non-manufacturing costs are the costs that are not linked directly to making the product.

Selling costs that incurred in selling the Layer Cakes are Advertisement and Shipping. Administration costs that incurred in the general Administration of APOLLO Company are Accountant`s salary and Secretary`s salary.

4.Fixed Cost

Fixed Cost are the costs that stay the same no matter how many products are made. The cost does not change in response to changes in volume. For example, APOLLO Company can buy Rm 600 worth of cleaning materials each month and pay the cleaner a fixed salary each month. The Cleaner does this cleaning whether 200 or 400 layer cakes have been made. The Cleaner can use more cleaning materials on some days, but basically the cost of cleaning materials will be the same per month. So the total cost of the cleaning material stays the same, regardless of the number of layer cake made.

600

100 200 300 400

Volume (of layer cakes made)

Second example of a fixed cost for APOLLO`s Layer Cake production, the company has to pay for rent, which is 3000Rm, whether it produces 10 layer cakes or 50 layer cakes.

3000

100 200 300 400

Volume (of layer cakes made)

Fixed Cost Per Unit

Within the monthly fixed cost cleaning materials, the average fixed cost per layer cake made decreases as more layer cakes are made.

Volume (of layer cakes made)

Within the monthly fixed rental, the average fixed cost per layer cake decreases as more layer cakes are made.

.

Volume (of layer cakes made)

Variable Cost

Variable costs are the costs that depend on company's production capacity. Costs rise or fall in direct proportion to number of goods manufactured. Two examples of Variable cost for a APOLLO Layer Cake production can be the cost of milk and butter. They will vary depending on the number of layer cakes were made.

Amount of Flour used Amount of Eggs used

Variable Cost Per Unit

The cost per litre of milk s constant at Rm 9 per Litre.

Rm 9

Number of Layer Cakes

The cost of butter by Rm5 per 100g.

Rm5

Number of Layer Cakes

.Semi-Variable Cost

A Variable and a Fixed Cost can also be combined to give us a semi-variable cost. This happens when one part of a cost is fixed and the other part is variable. An example of a semi-variable cost is a water and electricity account. A part of the cost is a fixed amount that has to be paid as a fee to the municipality. The rest of the cost is based on the units of electricity and liters of water used in a specific month.

Activity(per cubic metre of water.)

.

Activity (Kilowatt hours)

Step-Variable Cost

Step costs are those costs that are nearly variable, however they increase in small steps rather than unceasingly. For example, In APOLLO Layer cake company production, costs of counter-service personnel and delivery truck drivers are the step-variable costs. Plenty of these employees work part-time, which can be a few hours. So, company might has 20 workers. Supposing working process rise a little bit, these employees can do the extra job. But if the working process increases essentially, the manager may need extra help.

Activity Level

Conclusion

This assignment gave me chance to feel myself as a manager of the company, even for a short time. During the process of writing the assignment, I understood the true meaning of the Product Production in the Company. I chose an APOLLO FOOD BERHAD as a manufacturing company. As an International student, I wasn’t really familiar with the company`s background, but after making some steps of the task, I was really attracted to the products of the company. It motivated me to be even more productive of my work. Making a research, brainstorming , synthesizing, diagram drawing process of this assignment helped to challenge and improve myself as a first year student.