Incidence of production costs on the profitability of the Car-Vik Ice Cream Parlor in 2023 (Original).

Abstract

Technological advances require companies to look for new tools to improve management in order to be competitive and profitable. To this end, it is necessary to have a broad vision of how to calculate and record production costs, information that management must know if it wishes to reduce or improve and implement any productive or administrative process. In this context, the research was carried out with the objective of calculating the costs involved in production and their impact on the profitability of the CAR-VIK Ice Cream Parlor. The cost calculation began with the identification and description of the product, the direct inputs required, the direct labor involved and the indirect manufacturing costs. The unit cost of production was then calculated to set a unit-selling price. In addition, the necessary calculations were made to find the operating break-even point and the analysis of the financial ratios. It is necessary to mention that efficient cost management is essential to ensure the profitability and long-term sustainability of organizations. The research methodology was descriptive bibliographic and allowed to evaluate the data obtained through direct observation, interview questionnaire to be later tabulated and analyzed. The results obtained provided effective information for the calculation and analysis of costs for managerial decision making.