Cost management in a butcher sector of one consumer cooperative

Abstract

Cooperative societies, as well as any organization, need an adequate cost accounting, because it generates information that helps in better management of costs. The research is a case study developed in the fourth quarter of 2010 in a consumer cooperative, butcher industry, located in Santa Maria / RS, Brazil. The descriptive study shows a qualitative and quantitative approach and the main purpose is to determine the cost of goods sold in the butchery industry through a specific method of funding .The cost of goods purchased for resale was used to determine the average cost and the allocation of joint costs to the co-products (products from the same raw material) used the market value method. Other costs such as depreciation, maintenance, electricity, various materials and the rest of the workforce that was not included as a cost of boning products were prorated to the volume produced. The method used was costing absorption. The purchase cost of the cuts of meat sheep showed little variation during three months as well as the types of court. Although the cost of buying beef was varied during the months, the types of court also varied. Products like agulha, palette, chest and tip of beef osso buco and pork sausage had negative gross margin. The entity should study the best way to price its sales and improve spending controls in order to determine more accurately the costs of its products.