Answer to Question #126280 in Accounting for Humphrey Msigwa

Question

An investor would like to invest in orange juice production and he would like to know how much it will cost to produce a box of orange juice. He has shared a YOUTUBE clip of another orange juice production company to help with this activity. https://www.youtube.com/watch?v=T8KJGtMGMSY
REQUIRED:
From the clip and do the following: -
Identify and discuss all cost elements of orange juice production

Answer 1

In the production of orange juice, all cost elements are used:

• Raw materials and materials - oranges minus returnable waste, auxiliary materials purchased from the fuel, purchased energy of all kinds for production)
•   Labor costs: core staff, support staff, management staff
•   Deductions for social needs
•  Depreciation of fixed assets
•   Other fixed costs: payment for third-party services, utility bills, training costs, administration and management expenses
•  Other expenses: representative expenses, travel expenses, property tax, land tax