Cost Accounting of Coke produced by Coca-Cola Company

Running head: COST ACCOUNTING
Cost Accounting of Coke produced by Coca-Cola Company
Name of the student
Name of the university
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COST ACCOUNTING
Table of Contents
Introduction......................................................................................................................................4
Place of Manufacturing....................................................................................................................4
Gross Margin and Cost of the Product............................................................................................5
Table No 1: Table of Gross Profit Margin of Coke.....................................................................6
Figure 1: Gross profit margin of Coke........................................................................................6
Table 2: Calculation of the Cost Price of Coke...........................................................................7
Competitors Product........................................................................................................................7
Table 3: Pepsi Gross profit Margin.............................................................................................8
Comparison between Two different Competitors............................................................................8
Table 4: Comparison of Earnings of Coke and Pepsi..................................................................9
Table 5: Comparison of Sales of Coke and Pepsi......................................................................10
Table 6: Comparison of Dividend Increase of Coca-Cola and Pepsi........................................11
Table 7: Comparison of Dividend Growth over the year of Coke and Pepsi............................12
Value Chain Concept.....................................................................................................................12
Figure 2: Coca Cola or Coke the Product..................................................................................13
Research.........................................................................................................................................14
Table No 8: Sugar Price Estimates............................................................................................14
Opportunities.................................................................................................................................15

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Figure 3: Price Maintenance of Coke........................................................................................16
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

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Introduction
The following project is based on comprehensive product costing. The product selected is
one of the most popular drinks of the world which is Coke produced by Coca-Cola Company.
The company has its origin in the United States. The following project aims to discuss the most
effective and efficient ways to find out the elements related to the product costing of the
following. The company was formed as a medicine company in the 19th century by John
Pemberton. However after some time a businessman named Asa Griggs Candler bought the
company and changed its fortunes from a mere medicine producing company to its present status
of a dominating soft drink company of the world. The main features of this particular project are
provided below. They are categorized as follows;
Place of Manufacturing
Coca Cola is one of the largest manufacturers of cold drinks and beverages across the
world. The particular product has its manufacturing plant all across the globe. The main reason
behind this is the wide acceptability of Coke across the globe. The company has mainly its
bottling units all across the world. The company has least number of plants in its place of origin
which is in North America. It has its production and bottling plants in USA and Canada. In the
South Americas the company has its plants located at almost all of the countries. This includes
the likes of Argentina, Bahamas, Brazil, Chile, El-Salvador, Mexico and many more as such. In
Europe it has similar presence in all over the continent with different kind of factories in Ireland,
Italy, France, Sweden, Switzerland, Romania, Spain and in many other countries. IN Africa too
the company has its plants in almost all the countries. Last but not the least it has a strong
presence in Asia with huge number of units in India, Pakistan, China, West Asia and many other