Pre Seen Summary
Study these flashcardsFree · spaced repetition · iPhone, Android, Mac & web
All cards
1
How many large plant backeries are there in Keeland
5 (including halfpenny) 1 of them only makes bread for supermarkets to sell under their own brand, others are direct competitors
2
Notes on standards and budget preparation
- Standards are reviewed and updated annually.
- Normal raw material losses are included in the standard cost of each product
- All direct labour overtime premium is treated as variable production overhead. Idle time is not budgeted for.
- Fixed and variable production overheads are allocated and apportioned to production cost centres and absorbed on a machine hours basis
- Budgets are prepared annually using an incremental approach. Managers have limited involvement in budget setting.
- Normal raw material losses are included in the standard cost of each product
- All direct labour overtime premium is treated as variable production overhead. Idle time is not budgeted for.
- Fixed and variable production overheads are allocated and apportioned to production cost centres and absorbed on a machine hours basis
- Budgets are prepared annually using an incremental approach. Managers have limited involvement in budget setting.
3
When is year end
31st December
4
how are assets valued
cost less depreciation- no revalued surplus
5
What is Halfpenny's mission
:~ Give you the best tasting bread in a range of flavours
:~ Use the highest quality flour and ingredients
:~ Source ingredients from sustainable suppliers that we treat fairly
:~ Be carbon neutral by 2040
:~ Use the highest quality flour and ingredients
:~ Source ingredients from sustainable suppliers that we treat fairly
:~ Be carbon neutral by 2040
6
Senior management team
MD - Trey Halfpenny
Sales & Marketing director - Rosa Gimble
Product Development Director - Harry Chang
Production Director - Jack Hobbs
Distribution Director - Syed Hussain
Finance Director - Lottie Phipps
HR Director - Samira Kuma
IT Director - Benjamin Juma
Sales & Marketing director - Rosa Gimble
Product Development Director - Harry Chang
Production Director - Jack Hobbs
Distribution Director - Syed Hussain
Finance Director - Lottie Phipps
HR Director - Samira Kuma
IT Director - Benjamin Juma
7
Finance team
Lottie Phipps - FD
Tom Gregor - Finance Senior Manager
Evita Gomez - Finance Manager (My direct boss)
6 finance officers (im one of them)
Tom Gregor - Finance Senior Manager
Evita Gomez - Finance Manager (My direct boss)
6 finance officers (im one of them)
8
Sales and marketing team
Rosa Gimble - sales & marketing director
Pia Baz - Sales senior manager
Terry South - Marketing senior manager
Lu Chen - Large retailers sales manager
Raj Patel - Small retailers sales manager
Pia Baz - Sales senior manager
Terry South - Marketing senior manager
Lu Chen - Large retailers sales manager
Raj Patel - Small retailers sales manager
9
Production team
Jack hobbs - Production director
Roger smith - production senior manager
Val Prince - Facilities senior manager
Tarek Ria - Stores Senior manager
Roger smith - production senior manager
Val Prince - Facilities senior manager
Tarek Ria - Stores Senior manager
10
Current sales split
12% Local convenience stores
8% independant grocery stores
80% large retailers
sales prices are 20% lower for large retailers
Credit period for large retailers 40 to 60 days
credit period for small retailers 20 to 40 days
8% independant grocery stores
80% large retailers
sales prices are 20% lower for large retailers
Credit period for large retailers 40 to 60 days
credit period for small retailers 20 to 40 days
11
Raw materials and suppliers
Flour
3 types - White, wholemeal, coarse-grain wholewheat
5 suppliers
payment terms 20 to 30 days
Yeast
Only one supplier for 20 years
30 day payment terms
Grains and seeds
Multiple suppliers - orders made on lowest cost basis
payment terms 30 to 60 days
3 types - White, wholemeal, coarse-grain wholewheat
5 suppliers
payment terms 20 to 30 days
Yeast
Only one supplier for 20 years
30 day payment terms
Grains and seeds
Multiple suppliers - orders made on lowest cost basis
payment terms 30 to 60 days
12
Distribution
Own distribution centre
aim to dispatch within 2 days of the product being made
own fleet of vehicles
aim to dispatch within 2 days of the product being made
own fleet of vehicles
13
Emplyee split
Production 827
Distribution 1,156
Head Office 225
Total 2,208
Distribution 1,156
Head Office 225
Total 2,208
14
Financials
Turnover increased 3.3% from prev year
Profit 0.2% increase prev year
Gross profit, operating profit and net profit all slightly less than prev year
Profit 0.2% increase prev year
Gross profit, operating profit and net profit all slightly less than prev year
15
SOFP
PPE UP 7293
Right of use asset DOWN 1428
Inventory UP 1085
Trade rec UP 685
Prepayments UP 135
cash DOWN 50
Shares SAME
Retained earning UP 7731
NON current Lease liability DOWN 1476
Trade payables UP 1176
Accruals UP 235
current lease liability DOWN 56
Right of use asset DOWN 1428
Inventory UP 1085
Trade rec UP 685
Prepayments UP 135
cash DOWN 50
Shares SAME
Retained earning UP 7731
NON current Lease liability DOWN 1476
Trade payables UP 1176
Accruals UP 235
current lease liability DOWN 56
16
Cashflow
19,730,000 spent on PPE
845,000 proceeds from sale of PPE
1532 repayment of lease principal
12,000 paid in dividends
-50,000 cashflow
845,000 proceeds from sale of PPE
1532 repayment of lease principal
12,000 paid in dividends
-50,000 cashflow
17
Budget 2025
gross profit budget 0.7% higher than prev year
beard rolls budgeted to have higher gross profit margin
Rustic has the highest gross profit margin (budgeted) for loaves and rolls, Multiseed second, then white, wholemeal last
beard rolls budgeted to have higher gross profit margin
Rustic has the highest gross profit margin (budgeted) for loaves and rolls, Multiseed second, then white, wholemeal last
18
Notes on standards and budgets
19
Tax in Keeland
20
What type of budget to Halfpenny use?
Incremental - top down
21
How do Halfpenny absorb their overheads?
Machine hours