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Essay / Research Paper Abstract
A 4 page paper answering several production costs questions and using Coca-Cola as the reference company. Questions address production costs; supply chain management; and the production possibility frontier. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSopsProQu.rtf
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Unformatted sample text from the term paper:
Coca-Cola Company "engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide" (Profile, 2008). Its bottlers produce the final products; Coca-Cola provides the leading input
product. 1. What are the main costs of production for the good or service your organization supplies? Break down the costs from the largest to the smallest.
Production costs fall into the three categories of direct materials, direct labor, and factory overhead. Overhead includes both fixed and variable costs (Horngren Sundem and Stratton,
2002). Fixed costs remain the same regardless of whether the manufacturer produces anything; variable costs are items of overhead but vary in relation to the level of production at
which the organization operates. An example is electricity or water used in the manufacturing process but is not a part of the finished product. Higher production levels translate
to increased need for electricity to operate the facility and machinery. In the case of Coca-Cola or any other manufacturer of any type of food or beverage product, increased
production equates to increased cleaning, sterilizing, rinsing and any other process that uses water. Of the three types of production costs, labor generally
is the greatest single cost. The cost of labor is not only the wages received by the employee, but also the total of wages, payroll taxes, and any benefits
that the company provides. The cost of raw materials generally is the lowest of all of the production costs; this is particularly true
for Coca-Cola. The company produces only syrups and concentrates that it sells to bottlers; likely the greatest single raw material cost associated with Coca-Cola is high-fructose corn syrup, followed
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