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In this part, the cost production for the entire project is estimated in the given tables below. Most of the
cost stated is estimated form the price stated in the Malaysian market. It is essential to make a production
cost budgeting to estimate overall cost assumption for the project.
The budgeting is planned using the top-down method budgeting. Top-down budgets are those broad,
loosely supported financial projections used by senior management to set the financial goals of the
organization. According to Quentin Fleming in Cost/Schedule Control Systems Criteria , “… top-down
budgets should be subsequently reinforced by more detailed bottom-up financial estimates, which would
serve to verify that the gross plans of management can be met.” Topdown budgeting approaches can be
used successfully to form ballpark estimates of the entire development process, which gives management
solid information for strategic decisions. That is, as long as such estimates are not cast in concrete. And
top-down budgets can even act as limitations, such as “this is the most we are willing to spend on this
project.” In those cases, the bottom-up estimate must fit comfortably—well within the limits of the top-
down budget.
All the cost is purely stated without any cost constraint and is based on the production 300 macarons with
3 different flavors. To calculate the net worth, we use Net Present Value (NPV) calculating. The discount
rate is 9% and the outflow of the first month is RM 34429.08 which the total of initial investment,
expenditure and employee’s salary. For the following months, the outflow is RM 23029.08 which is consist
of employee’s salary and expenditure of every month. The first inflow for our sales is RM31500 based on
the price of our macarons which is RM3.50 per pcs and we sell it 300 pcs a day for 30 days. The incoming
months of our inflow sales is increase by 9% based of our sale growth.
RAW MATERIAL
EXPENDITURE
EMPLOYEE’S SALARY
=RM 34429.08
SOURCES OF RESOURCES
Growth sale = 9 %
= RM 34429.08
Inflow for first month = prices of macarons of 300 pieces a day for 30 days
= RM3.50x300x30
=RM31500