Developing cost management system for Adil Foods
Adil Foods Corporation is a food company that has recently stepped into the agricultural industry. The company operates in Multan, Pakistan, and has been operating since 2001. The company provides white meat and eggs to suppliers of the domestic market. The management of Adil Foods expressed that their business failed to achieve the profitability goal for the year 2020. Mr. Rashid, the CEO of Adil Foods, noted issues with the cost monitoring and data analysis. The tools used for data collection were structured interviews, observation, and the company’s financial & internal reports. The CEO, Financial manager, and production manager were interviewed. Framework analyses were used to analyze the data. The results revealed that the business failed to achieve its profitability goal due to a lack of data analyses. The lack of data analyses was leading to poor decision-making. The literature review explored functionalities, conceptual frameworks, and limitations of the Enterprise resource planning software (ERPs) and excel-based cost management system. The existing literature coupled with the primary research indicated that an excel-based cost management system is better for Adil Foods as it is cheaper and Adil Foods management is familiar with the software. The proposed solution is a tailor-made cost management system that uses variable costing and sensitivity analysis to compute valuable information and generate signals. The excel based cost management system also forecasts data which will assist managers in making rational and prompt decisions.
Applied project submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2021
poultry business, Excel-based model