Accountants of PepsiCo and Their Role in Minimizing the Cost - Case Study Example

The paper "Accountants of PepsiCo and Their Role in Minimizing the Cost" is a perfect example of a case study on finance and accounting. PepsiCo is the company that is engaged in making beverages like soft drinks, juices, pure water, tea and energy drinks. Its brands are Tropicana, Pepsi, Mountain Dew, and others. Manufacturing businesses use different techniques in order to manage the cost so to achieve the main goal of the business to increase its profits. PepsiCo also requires a Contemporary management technique to achieve its success factors. They have to work on the cost area for their purpose.

The accountants of the company could play their role in minimizing the cost. Accountants are advised to apply the standard costing method for the purpose. In this method, the expected cost is calculated at the time of purchasing raw material and before the manufacturing process is started. Although a variance is to be found between the actual cost and expected cost it could be managed by the accountants later. The expected cost will provide help to the accountants to identify the selling price of the product after it is being manufactured. They help in determining the expected cost that could be taken by the software as well in the modern world (Marie & Rao, 2010).
Accountants could control the cost during the manufacturing process through strategies such as economies of scale. Economies of scale refer to the units of the products to be manufactured so as to set the cost at an equilibrium point. The target set by the accountants that the units of products would be that could change later. For example, the company has the target to produce 100000 liters of Pepsi but it is found that the cost of the unit is not enough that it could not recover the accountants could change the strategy (Shi, 2012).  Read More