Journal of Emerging Trends in Engineering and Applied Sciences: Research Areas

Article Title: Production Cost Estimation in Food and Drink Industry (A Case Study of a Soft Drink Company in Lagos, Nigeria)
by Mogaji, P.B., Adejuyigbe, S.B and Adesida V. K.

Abstract:
A cost data were collected from a soft drink company in Lagos, Nigeria and used to develop a manual costing model for a 35cl package size for flavor, with special consideration for weight and size. Other cost parameters like; raw materials, labour, transportation, water and electricity were also considered and analyzed using mathematical methods. An effective cost estimate of N18.42k for flavor was made which is then compared with the management's target cost of between N18.00 to N20.00 for the same product. This shows that the cost estimation is still within the range with no deviation from management's target cost. However, adequate awareness should be given to manufacturing industries on the importance of having production cost estimation before the product is manufactured. To this end, this paper recommended the use of cost estimation for use in any food and drink manufacturing company here in Nigeria, developing and developed countries in world in general.

Keywords: production cost, estimation, food and drinks and industry

Download full paper