McVeggie Burger

Submitted by:
Aashi Lunia(12020242001) Ankita Singh(12020242006) Atika Jain(12020242011) Mudita Bhadri(12020242023)

McDonalds in India(Mac-D)
McDonalds

spent more than 5 years (from 1990 onwards) on developing the first beef-less and porkless menu in McDonalds history. McDonalds pioneered the establishment of Cold Chain across India which helps maintain freshness and nutrition in every product The first McDonald's restaurant in India opened on October 13, 1996 at Basant Lok, New Delhi Every McDonalds burger has nine different ingredients, which are sourced, from 35 suppliers across the country before it reaches the consumer

Costing has always been innovative at McDonalds

Especially when The Happy Price Menu competitively priced at just Rs.20 was unveiled in April 2004
McVeggie is one of the favourite veg burger at McDonalds costing Rs. 56. Interestingly, the same McVeggie when sold under various offers costs different : Value Lunch meal- Costs just Rs. 85 with French Fries and Coke Similarly for Happy Meal, Extra Value meal and other Combo offers the price changes. Though it is a CRM promotional activity but it does impact costing of the product to lot of extent as Company plays on volumes and reduces its margins

Trikaya Agriculture (Supplier of Iceberg Lettuce):

Implementation

of advanced agricultural practices has enabled Trikaya to successfully grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. McDonald's has: provided assistance in the selection of high quality seeds exposed the farms to advanced drip irrigation technology helped develop a refrigerated transportation system helped in developing the ability to grow lettuce all the year round

Vista Processed Foods Pvt. Ltd

Supplier of Chicken and Vegetable range of products including Fruit Pies

 Technical

and financial support extended by OSI Industries Inc., USA and McDonald's India Private Limited have enabled Vista to set up world-class infrastructure and support services. This infrastructure includes hi-tech refrigeration plants for manufacture of frozen food at temperatures as low as 35 C Vista has installed hi-tech equipment for both the chicken and vegetable processing lines, which reflect the latest food processing technology. Utmost care is taken to ensure that the vegetable products do not mix with the non-vegetarian products. Productions of high quality frozen foods have made Vista a name to reckon within the industry.

Dynamix Dairy Industries

Supplier

of Cheese Located in Baramati,Maharashtra. Initially there was a large wastage due to lack of infrastructure.
Recognising

the need for quality milk to make quality cheese, Dynamix set up a dedicated quality program for milk procurement and invested significantly. Time from milking to refrigeration was reduced. On receipt milk is immediately stored in the bulk coolers installes in Dynamixs 45 collection centres

Amrit Food
Supplier

of long life UHT Milk and Milk Products for Frozen Desserts. The factory has: State-of-the-art fully automatic machinery Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High Temperature) processed milk and milk products. Strict quality control. All suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald's recognized standards.

Radhakrishna Foodland (P) Ltd.

McDonald's

Distribution Partner The division has focused all its resources to meet McDonald's expectation of 'Cold, Clean and On-time Delivery'. Responsible for procurement, quality inspection programme, storage, inventory management, deliveries to the restaurants, data collection, recording and reporting.

Financial accounting vs Managerial accounting

Aggregation

Efficiency
Proven information Reporting focus Standards Systems

Time period
Timing Valuation

Users of Accounting Information

Internal Users External Users

Lenders

Consumer Groups

Managers Officers

Sales Staff Budget Officers

Shareholders External Auditors Governments Customers

Internal Auditors Controllers

1-11

Users of Accounting Information

External Users Internal Users

Financial accounting provides external users with financial statements (shareholders, lenders, etc.).

Managerial accounting provides information needs for internal decision makers (officers, managers, etc.).
1-12

Users of Accounting Information

Moving up the organizational ladder, financial Middle managers use a blend of financial information and nonfinancial information, while senior becomes executives concentrate on financial data. increasingly important.
Lower level employees use nonfinancial information such as work schedules, store hours, and customer service policies. To a lesser degree, senior executives also use general economic data and nonfinancial operating information.

Managerial Motivation
Which company would you invest in: A or B? Company Year 1 A 1m B 4m Year 2 2m (1)m Year 3 4m 15m Year 4 8m (3)m

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Managers may wish to boost profits to benefit from i. Profit related pay ii. Shares and share options

COST SHEET ANALYSIS

ASSUMPTIONS
Cost of 1 McVeggie Burger Raw Materials Required o Buns o Mayonnaise o Onion o Lettuce o Cheese o Tikki

No opening and closing stock of raw material

SPECIMEN COST -SHEET

Particulars Opening Stock of Raw Material Add: Purchase of Raw materials Buns Mayonnaise Onion Lettuce Cheese Tikki Less: Closing stock of Raw Materials Prime cost (1) Miscellaneous Expenses Cost of Goods Sold Cost of Sales Profit (balancing figure) Sales 2 12gm 1 slice 1.2gm 1 slice 112 gm 1 4 0.6 0.18 0.47 0.86 22.4 8 7.2 0.18 0.564 0.86 5 16.804 2.2 19 19 37 56 Quantity Amount (Per Unit) Total

THANK YOU !!