Chapter II

REVIEW OF LITERATURE

Cost accounting plays a crucial part in business field especially to those who are in the

line of food manufacturing industry such as bakery. In starting up a bakery, you must be totally

ready and prepared. The person who is in charged with the management should be

comprehended on how to manage the business properly. In manufacturing industry, the

production and operation plays a big part in cost management because it’s where the cost of the

product takes place.

To start with, first, all necessary ingredients must be all present and available. These are

the building blocks of the bakery line business, and without these ingredients, there would be a

practically impossible to bake. C. Bloom (2010) in his book “The Essential Baker” enumerated

the basic ingredients a bakery needs.

Ingredients in baking breads

One of the most basic ingredients is flour. Flour comes from finely ground meal of wheat

and other grains. To make flour the germ and bran of wheat is broken open and removed, leaving

the endosperm or the heart of the train, which is milled. It has several roles in baking. It provides

structure because it contains protein, which when combined with liquid in recipes, produces

gluten. This forms spring, elastic bond and allows the mixture to hold air, which is what enables

baked goods to rise. The amount of protein varies in the type of flour, and this determines the

strength and rising ability of the flour. Flour also provided texture to baked goods. It contains

starch, and when combined with liquid the starch expands and forms a wed that holds other
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ingredients together. This also adds color to baked goods because its natural sugars caramelize

during baking and turn golden. This is what gives cookies, cakes, pies, and other baked goods

their appetizing golden brown visual appeal. The caramelizing of the sugar also adds to the

delicious aromas during baking. A fine coating of flour also helps keep ingredients such as dried

fruit and nuts from sinking to the bottom of a batter. There are various kinds of flour that a baker

is using to produce different variety of bread.

Bread Flour is made from hard wheat and has the highest protein content, about 16%,

which allows it to hold the largest amount of gas produced by yeast, and to rise to its highest

capacity. All purpose-flour is a blend of hard and soft wheat flours and has a medium protein

content, usually 12%. It is the most widely used flour for baked goods. All-purpose flour is

available both unbleached and bleached. The color of unbleached flour is ivory of pale and that

bleached flour is pure white. Pastry flour is made from soft wheat. It has less protein that all-

purpose flour and slightly more protein than cake flour, about 9%. Pastry flour is usually found

in natural or health food store in buns where you can choose the amount you want to buy. It is

important to use the type of flour that a recipe calls for, or the outcome will be very different

than the recipe promises. Never use bread flour for baking anything other than bread. And don't

use all-purpose for making bread.

Bittman M. (2012) in his book “How to cook everything” also enumerated various kinds

of flour. He described flour as the backbone of all baking. Though milling, grounding determines

how much of the grain is actually used and the texture of the flour, the way it bakes is actually a

reflection of the characteristics of the original grain. As an addition to the flour stated above,

here therein is bread flour. It is milled form hard wheat. Bread flour has more protein than all-

purpose flour and therefore greater gluten strength, which makes it the flour of choice for elastic,
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easy-to-handle bread dough that produces chewy crumb and sturdy crust. It is sometimes

“conditioned” with ascorbic acid but even moderate quantities can make the finished dough taste

slightly sour so better off without it. Self-rising flour also called phosphate flour is essentially

all-purpose flour plus salt and leavening agent like baking powder. It works for biscuits and

quick breads but not yeasts breads. In any case, it is a silly concept, since it’s more expensive

and cannot be substitute for all-purpose flour; furthermore, it’s easy enough to add those two

ingredients to regular flour. Another is rye flour. It is milled from rye berries, a grass similar to

but different from wheat. This flour is graded dark, medium, or light, depending on how much

bran is milled out. The darker the flour, the stronger the flavour, the higher the protein and fibre

makes this a nice substitute for a small amount of white flour in bread recipes. Because this has a

low gluten content, rye flour is almost always combined with white flour. But even if your ratio

is high in wheat flour, baked goods made with rye flour may tend to be moist, dense, deeply

colored, and slightly sour tasting.

Another important ingredient of bread that C. Bloom stated is sugar and other sweeteners.

The primary role of sugar and other sweeteners is to provide sweetness, but they have countless

other uses in baking. Sugar is a very versatile ingredient. Sugar and other sweeteners provide

moisture to baked goods. They add flavor and tenderness, and help determine the texture. Sugars

contribute color by caramelizing when heated, and they create mixtures, stabilize whipped egg

whites, and are also used for decoration. Sugar is hygroscopic, which means it draws moisture

and holds onto it. This prolongs the life of baked goods by keeping them fresh for a longer

period. Sugar also absorbs water during the process of mixing ingredients together. By doing this

it keeps gluten from developing, because it keeps the proteins in the flour from absorbing too

much of the water. This contributes to the tender crumb and texture of many baked goods. One
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of the main roles of sugar is to contribute flavor to baked goods. The use of sugar us what sets a

part sweet baked goods and desserts from savory baked goods. Sugar is also used to decorate

baked goods.

Confectioners’ sugar we often dusted on the tip of a finished product. Coarse-grained

pearl or sanding sugars make an attractive topping for cookies and other baked items. Sugar is

refined from either sugar cane or sugar beets. The package will state that it contains cane sugar.

If it doesn't, then the sugar is made from beets. Sugar beets are easier to grow and process than

cane, so sugar made from beets is more widely available than cane sugar. Granulated sugar also

called table sugar and fine sugar, is the most common form of sugar and the most widely used

sweetener. It is all-purpose and is what we know as "regular" sugar. Granulated sugar is white,

free-fliwint and highy refined from either sugar cane or sugar beets. Superfine sugar also known

as bar sugar and caster of Castor sugar, us more finely granulated than regular sugar. The crystals

of superfine sugar are the most uniform of all the sugars. It dissolves very easily and leaves no

trace of grittiness behind. This makes it ideal to use for meringues and fine textured cakes and to

dissolve in liquids. Unbleached cane sugar is made from sugar cane that is processed less than

granulated white sugar, but they Crystal size is the same. It is a light blond color and can be used

in place of granulated sugar in any application. Organic sugar, also labelled "evaporated cane

juice" is made from organically grown sugar cane. It is minimally processed; it remains a light

blond color. Confectioner sugar is also called powdered sugar and icing sugar, is granulated

sugar that has been ground to a fine powder and sifted. Confectioner sugar contains about 3%

corn-starch to prevent caking during to moisture absorption. It dissolves very easily and is used

in ivings and frostings, to flavor whipped cream, and for some delicate cakes, cookies and tart

dough. It's also widely used to dust and decorate baked goods.
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Coarse sugar, also called decorators or pearl sugar, is white sugar that is processed into

large grains about the size of lentils. Coarse sugar is primarily used for gathering baked goods.

Crystal or sanding sugar is white sugar that has been processed into large grains that are four to

six times the size of granulated sugar. It is used mainly for decoration on top of baked goods.

This type of sugar catches and reflects light to give the baked goods a sparkling appearance.

Brown sugar is made from white sugar to which molasses is added back after initial

removal. This is what gives brown sugar soft, moist texture and distinctive rich flavor. Light

brown sugar has a small amount of molasses added to it. It can replace white sugar in some

recipes but does contribute a more full-bodied flavor and more color. Dark brown sugar has

more molasses than light brown sugar. This gives it a very distinct, deep flavor. Light and dark

brown sugars can be substituted for each other as long as you are aware that there will be

substituted for each other as long as you are aware that there will be a noticeable difference in

flavor.

Demerara sugar is a type of raw sugar that has been processed to remove any impurities.

This is a light brown sugar with large crystals that are slightly sticky and dissolve slowly.

Demerara sugar can be used in place of brown sugar. Because of its relatively large crystals it

works well as a topping and decoration. Muscovado or Barbados sugar is a specialty type of raw

sugar that is finer grained than Demerara sugar. It is available in both light and are brown sugars.

Turbinado sugar is another type of raw sugar that retains some of its molasses. It is a light blond

color with coarse crystals and tastes much like light brown sugar. Turbinado sugar can be used in

place of brown sugar in many baking recipes.

Another type of sweetener is the liquid sweeteners. Honey is one of the common liquid

sweeteners that is easy to be found. It is a sweet thick liquid made by honeybees from the nectar
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of various flowers. The flavour varies depending on the area where it is produced and the type of

flower that is the primary source for the nectar such as buckwheat, thyme, clover, and lavender.

There are regional specialty honeys around the world. Honey is composed of approximately 18

percent water and is hygroscopic. It also acts an interfering agent to prevent sugar crystallization.

Honey adds flavour, sweetness, texture, and moisture to baked goods. It is also available in both

glass and plastic jars and bottles. It keeps for years, but crystallizes with age. To liquefy

crystallized honey, heat the opened jar or bottle in a microwave oven on low power or in a pan of

warm water on medium heat. Honey is available in supermarkets and specialty food shops.

Another is maple syrup. It is made by boiling the sap of the sugar maple tree until most of the

water evaporates. It is sweet with a rich, aromatic flavour. Maple syrup is graded according to

the color. The delicately flavoured pale golden syrups are classified as Grade AA or Fancy.

Grade A and Grade B syrups are slightly deeper in color with stronger flavors. Grade C is very

dark with robust flavour and is not readily available to consumers. Maple syrup adds sweetness,

moisture, and texture to baked goods. Use pure maple syrup, not the cheap imitation, which is

made by adding maple flavour to corn syrup (another kind of liquid sweetener).

Liquid sweeteners must be stores at a cool temperature and dry place until opened. Once

opened store them tightly covered in the refrigerator because it may be crystalized it not covered

properly.

Fats are among the most important ingredients in baking. They contribute flavour, color,

moisture, texture, and richness. They tenderize and help leaven batters and dough. Fat holds

moisture and limits the development of gluten in the batters and dough by coating the gluten

strands. Fat traps air between layers of dough that turns to steam in the heat of the oven. This is

what allows puff pastry to rise to such dramatic heights and is what creates flaky pie crust. When
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solid fat is creamed with sugar, air becomes trapped in the mixture that swells when baked and

results in tender product. Fats not only provide flavour to baked goods, but contribute a distinct

texture to them. Coating the inside of baking pans with fat keeps baked goods from sticking and

makes it easy to remove them from the pans without breaking. The type of fat chosen and the

method used to combine it with the other ingredients in a recipe determine the degree of

tenderness and richness in the result. In cookies, the type of fat used determines how much they

will spread.

The said fats can be butter. Butter is by far the first choice for baking because it provides

the very best flavour. Most of the time, unsalted butter is used because it has a clean, pure

flavour that is unmatched. Salt acts as a preservative. By using unsalted butter, you are assured

that it is fresh. Also, by using unsalted butter you can control the amount of salt in the recipe,

since different brands of butter contain different amount of salt. Unsalted butter is more

expensive than salted butter because it is more perishable. Unsalted butter is sometimes

inaccurately called sweet butter, but sweet butter actually refers to butter made from sweet cream

and can be either salted or unsalted. Unsalted butter should be stored wrapped tightly in plastic in

the refrigerator for up to two weeks. Butter easily picks other flavors, which is one of its valued

characteristics for baking, but this means it should be kept way from strongly flavoured food in

refrigerator. Butter can also be frozen, very well wrapped, for up to four months.

C. Bloom also includes eggs. Eggs have very big role in baking. They provide texture,

structure, color, moisture, flavour, richness, tenderness and leavening. They act as emulsifier,

holding fat and other ingredients together to create silky, smooth textures. Eggs and egg whites

are often used to glaze the tops of some baked goods, giving them excellent color and crisp

texture. Eggs consist of the white, which is composed of water with some protein, and the yolk,
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which contains protein, fat, cholesterol, vitamins and minerals. All eggs are graded for both

quality and size. Quality is determined by their physical condition and age. Candling is a

technique used by those who grade eggs. It allows them to look inside the egg with strong light

and distinguish the size of the air compartment between the shell and the egg. It substitutes are

not suitable for baking. Because they are approximately 80% egg whites with no egg yolks, they

don’t work the same as whole eggs in baked goods. Some brands of egg substitutes contain

various other ingredients, such as tofu, oils and non-fat milk, which won’t react in the same way

as a real egg when used for baking. Egg whites can be stored in the refrigerator in a tightly

covered container for up to four days. If you need to keep them longer, freeze them. An easy way

to tell how many egg whites you have is to freeze them in ice cube trays. Each cube is one egg

white.. Another way to determine the amount is in liquid measuring cup. Three extra-large egg

whites measures one and a half cup. Egg yolks can be frozen with one half teaspoon of sugar

blended into each yolk to keep them from becoming lumpy. Although eggs and butter can acts as

leaveners by trapping air that arises during baking and yeast is natural leavener, chemical

leaveners are our concern here.

Leaveners are the ingredients that help baked goods rise. C. Bloom states when it is

mixed with other ingredients, leaveners produce carbon dioxide gas, which becomes trapped

within the structure and stabilizes it. In this way, they lighten baked goods by lifting the structure

of them. Bittman added that the process of leavening s as old as baking – that is, thousands of

years – but it’s been understood only since the id-nineteenth century, when Louis Pasteur

discovered that yeasts are living, single-cell fungi that produce carbon dioxide through

fermentation baking and brewing have a lot in common. Before the most breads were raised with

sourdough starters, which contain wild-yeasts, but shortly thereafter commercial yeast
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production began. Now, of course, you can buy yeasts in various forms at the supermarket,

including fresh, active dry, and instant, which is the most recent addition to the group and by far

the most convenient.

Baking powder is composed of two parts of a baking acid as stated by C. Bloom, such as

cream of tartar, and one part baking soda. C. The tartaric and in the mixture activates the baking

soda. A little corn starch is also added to baking powder to absorb moisture and stabilize the

mixture. There are three main types of baking powder: single acting(also called fast acting),

which reacts when mixed with liquid, slow-acting, which reacts when heated, and double-acting ,

the most common type, which reacts first when moisture and again when heated. Most baking

powder sold in the United States is double acting. Baking soda also called bicarbonate of soda is

an alkaline ingredient that works best when combined with an acid ingredient such as natural

cocoa powder, chocolate, molasses, brown sugar, honey, and sour cream, yogurt, buttermilk or

citrus juice. This combination of alkaline and acid ingredients efficiently produces carbon

dioxide gas bubbles, which aid in leavening baked goods. Baking soda reacts when moistened.

Another leavening is yeast. According to Bittman (2012), it has 3 types. The first one is

the instant yeast which is also called fast-acting, fast-rising, rapid-rise, and bread machine yeast.

It is a type of dry yeast and by far the most convenient of all. It can be added directly to the

dough at almost any point. It is fast and reliable. Instant yeast has ascorbic acid added. This helps

the dough to stretch easily and increases loaf of volumes. In most breads, you won’t notice any

difference in flavour. The second one is fresh yeasts. It is also known as cake or compressed

yeast. Fresh yeast is usually sold in foil-wrapped cakes of about 2/3 ounce. It should be

yellowish, soft, moist, and fresh smelling with no dark or dried areas. Frsh yeast must be

refrigerated. It has as expiration date and will die within 10 days of opening. It also be proofed
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before being added to a dough. This means you must combine it with liquid; when you do, it will

foam and smell yeasty (if it doesn’t, it’s already dead). Many bakers contend that fresh yeast

tastes better than dry. Active dry yeast is the last classification which falls between fresh and

instant and was used by most home bakers until instant yeast came along. ADY is fresh yeast

that has been pressed and dried until the moisture level reaches about 8%.

Salt is a natural, edible, white crystalline mineral that come either from salt mines or is

evaporated from sea water pools. It is technically known as sodium chloride. Salt is used to

enhance and enliven flavors in baking. Salt also adds color to the crust of many baked goods.

Cream of Tartar is a by-product of the wine-making industry. It is tartaric acid, a fine

white crystalline acid salt that is deposited as a residue on the sides of wine casks during

fermentation. The main role of cream of tartar is to stabilize egg whites as they whip by

combining with the proteins to firm them, so the egg whites can rise to their full volume.

Equipment used in making bread

For the best results baking, equipment and tools must be available for use. C. Bloom also

include in his books the equipment that can be used in baking. One of these is bowl, having a

variety of sizes of bowl will make baking easy. Glass bowls and some hard plastic bowls easily

go into the microwave oven, while stainless steel doesn’t. Mixing bowls should have flat bottom

so they can stand up easily. A good way to get started is to buy a set of graduated sizes of bowls.

Another one is cooling rocks, it’s important to elevate freshly baked goods on a cooling

rack so air can circulate around them completely. Otherwise stem can build up and the bottom

can become soggy. There are several shapes and sizes of cooling racks, round, rectangular and
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square. Another is knife. A good quality knife will last for many years and will make kitchen

chores such as slicing, cutting and chopping.

Rubber spatulas are used for mixing ingredients together, scrapping down the sides of

mixing bowls, and stirring the mixtures. It comes from different variety of sizes, some have short
1/2 or
handles about six inches and other have long, 8 9 inches long. For stirring chocolate and

working with a small amount of ingredients, short handle type of spatula is suitable. For mixing

and stirring butters, custards and fillings, long handles are used. There are regular rubber

spatulas, which are usually white, and those made of silicone or colors including black. The heat

resistant spatulas are excellent for stirring hot mixtures as they cook, but can be used for any

other tasks that call for a rubber spatula. The difference between the use of regular rubber spatula

and heat resistant spatula is important to consider. On the other side, rubber and silicone spatulas

don’t hold onto flavors because they are not porous like wooden spoons. The heads of spatulas

can be removed from the wooden handle so they can be washed in the dishwasher.

Rolling pins is a long, thick, smooth cylinder that is essential for rolling out pie, tart, and

many types of cookies and dough. Some rolling pins have handles at each end, while others are

solid hardwood cylinders with no handles. Standard size rolling pins are 2 ½ to 3 inches thick

and 12-18 inches long. Roling pins are made of variety of materials glass, ceramic, copper,

stainless steel, plastic, marble, Teflon and wood. And there is a new generation of rolling pins

that are covered with silicone that helps to keep them from sticking dough. The most efficient

rolling pin is a heavy-duty one because its weight allows the rolling pin to do most of the work.

American rolling pins have a metal dowel that runs through the center of a wood cylinder with

handles on each end. Hard wood, such as beech wood or boxwood, is the preferred material for

rolling pins because of its weight and strength.

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Pastry brush is used for a variety of tasks in the baker’s kitchen, such as applying glazes

at the top of pies and tarts, applying in eggs washes or liquid to the top of scones, cream puffs,

and profiteroles, washing down the sides of pan when cooking sugar mixtures, buttering the

inside of pans and moulds, brushing chocolate on surface, and brushing excess flour off of dough

after it is rolled out. It’s best to use the pastry brushes made from natural bristles so they won’t

tear or scratch the dough or melt if they come in contact with heat. Pastry brusher looks like

paintbrushes. They have wooden handles and come in a variety of widths from ½ inch to 4

inches. There are also pastry brushes made from several quills of goose feathers sewn together.

There are used for delicately applying glazes to the top of fruit. And there is a new generation of

pastry brushes made of silicones that are very flexible. It’s best to have at least a couple of pastry

brushes. Keeping pastry brushes used for butter and chocolate separate from those used for

glazes and washing down sides of pans, or especially from those used for savoury foods is a

good practice.

Pot holders are essential for removing anything from the oven for handling hot spots on

the stovetop. There are many types of potholders, form simple squares to long mitts. Potholders

come in a variety of materials, ranging from cloth to silicone. It is better to use whichever feels

the most comfortable. Potholders should be placed near the oven and stovetop so they are always

easy to find.

Sifters and strainers are tools used to aerate and mix together dry ingredients, such as

flours, confectioners’ sugar, cocoa powder, ground spices, baking powder and baking soda.

Strainers are also used for rinsing fruit and for straining purees and glazes. The more variety of

sizes of strainers on hand, the better. Strainers with plastic rims and mesh can easily be washed
 20

in the dishwasher. For sifting large quantities of dry ingredients, drum sieve, which is a large

shallow shifter is better to be used because it is easy to push the ingredients through by hand.

Timer is one of the most important things to consider. Without this, cookies, breads,

cakes could be burned or be uncooked having no just enough time of baking. There are several

types of timers available. The ideal one is reliable, easy to read, and easy to use. Always set a

timer for the minimum amount of time called in the recipe. It’s easy to add more baking time if

needed, rather than over baking.

Whisks are used to wimp air into ingredients, to mix ingredients together, and to stir hot

mixtures as they cook. A whisk is a tear drop-shaped, hand held utensil made of many thin

looped stainless-steel wires attached to a handle, usually made of a wood or metal, and there are

silicone-coated whisks, used for hot mixtures. The wires come in a variety of thickness and

lengths, making some whisks more flexible than others. There are mini whisks as small as 3

inches long and standard whisks ranging from 10 to 14 inches long. Flat whisks are used for

folding cake batters and other mixtures. Whisks with coiled springs are used for beating eggs.

Wooden spoons is an excellent choice for stirring hot custards and other mixtures as they

cook because wood does not conduct heat and doesn’t scratch the surfaces that it comes in

contact with. Wooden spoons with straight of flat edges cover more surface in bottom of the pan

those that are round, although the round ones are better for small pans. Wooden spoons should

not be soaked in water because it can cause them to splinter and deteriorate.

Zester is a six-inch-long hand-held tool that is designed to remove the aromatic outer rind

or zest from citrus fruit, without removing the inner white pith, whichever is bitter. A zester has

five small sharp holes in the end of a short metal strip attached to a handle made of plastic or
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wood. To use a zester, place the holes against a citrus fruit and pull from top to bottom with even

pressure which removes the zest in tiny threads.

Rulers and scissors also play an important part in baking. Ruler comes in a very handy to

measure the size of squares and rectangles when cutting brownies and bar cookies to measure the

size of slices of cakes, pies, tarts, and shortbread, and to measure dough as it is being rolled out.

A plastic ruler can be washed in the dishwasher. On the other hand, scissors are used for many

chores in the baker’s kitchen. Cutting parchment paper, trimming the points off of pastry bags,

chopping large pieces of dried fruit, and operating packages are only some of their uses.

Measuring utensils in baking

One of the essential necessities of a baker are the measuring utensils. Bittman (2010) also

include in his book the measuring utensils that can be used in baking. The first in the list is the

measuring cup. There are two types of measuring cups; dry and liquid. It is important to use the

correct type of measuring cup for the ingredients of else, the measure will be inaccurate. Dry

measuring cups are used to measure dry ingredients, such as four, sugar, and cocoa powder.

They come in nested sets in graduated sizes of ¼ cup, 1/3 cup, ½ cup and 1 cup. There are also

2-cup sizes available. There are two ways to use these measures, the scoop and sweep method

and the spoon and sweep method. For the scoop and sweep method, the measuring cup is

scooped into the ingredient and a flat utensil, such as back of a knife, is used to level off the

ingredient at the top of the cup. For the spoon and sweep method, the ingredient is spooned into

the cup until it reaches the top, then it is sweep off evenly with a flat utensil. Because these

measures are used so frequently, it is a good idea to keep at least two sets on hand. Liquid

measuring cups are used for liquid ingredients such as milk, cream, water, molasses, honey, oils,

and corn syrup. They are made in a variety of materials including glass, plastic, and metal. There
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is a room at the top of the cup above the line of measure that allows the liquid to sloth around

without spilling out.

Measuring spoons come in sets of graduated sizes; ¼ teaspoon, ½ teaspoon, 1

teaspoon and 1 table spoon. A 1/8 teaspoon measuring spoon is also available. Measuring spoons

come in both metal and plastic. They are used to measure small amounts of both liquid and dry

ingredients and should be filled even with their top edge. Detaching the measuring spoons from

their ring and storing them separately in small jars on the countertop may be a good practice.

Scales are very helpful for measuring butter and chocolate, especially if you buy it in

bulk. There are three types of scales spring; spring, balance and electronic. A spring scale is easy

to use. It has a bowl or pan that sits on a platform and reads in either ounces and pounds or grams

and kilos, o both. It works by using a spring device attached to a dial that registers the weight. It

can be set to zero each time a new ingredient is added to the bowl. Spring scales tend to lose

their elasticity over time, which makes them less accurate. Another type of scale is the balance

scale. It works by balancing weights against the ingredient until an accurate weight is reached.

Electronic scales display a readout of the weight of the ingredient. A bowl or pan is placed on

top of the scale to hold the ingredient being weighted and the scale can be set to zero. Electronic

scales are the most accurate and record weights up to ten pounds. They can also be set to zero

each time a new ingredient is added. Some models can weigh in both ounces and grams.

An ice cream scoop is perfect not only for scooping an ice cream but also in baking. With

1 ½ inch wide bowl of ice cream scoop, it is perfect tool for scooping out a drop cookie dough

into uniform size. There are several types of ice cream scoops but the easiest to use for the

cookie dough has a round bowl at one end of a tall shaft that has a lever on the handle. When the
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lever is squeezed, it moves an arc-shaped strip of metal in the bowl from side to side, which

releases the mixture.

Offset Spatula is a hand-held tool with a flexible stainless-steel blade. The blade has a

bend or angle near the handle that is stepped down about 1 inch from the handle, forming a Z-

like shape. The tip of the blade is round and blunt. Offset spatulas come in several sizes, with the

length of the blade ranging from 3 to 12 inches. The special shape is very handy for evenly

spreading batter in a shallow pan because the handle doesn’t hit the side of the pan. An offset

spatula is also used to fill and ice cakes, for decorative work and for moving cake layers and

cookies from one place to another.

Pastry bags and tips are used to shape batter and dough into cookies, cream puffs, and

profiteroles, to fill sandwich cookies and pastries, to pipe filling into pre-baked tart shells and to

decorate cakes and other baked goods. Pastry bags are shaped into cones, wider at the top and

narrow at the tip. The top sometimes has to be cut off slightly to hold special tips. Pastry bags are

fitted with tips made from metal or sturdy plastic. It is made from variety of materials;

disposable plastic, nylon, polyester, canvas and plastic-lined cloth. Nylon and polyster bags are

lightweight and can be washed and reused for several times. Pastry bags can also be shaped out

of parchment paper, especially useful when you need only a small bag. 12 and 14 inch sized

pastry bag are the most useful because they can hold enough without being overfilled and don’t

have to be refilled frequently. Pastry tips are available in a myriad of sizes and openings that

form various shapes and designs.

Pastry crimper is used to close and seal the edges of pies and pastry dough to keep the

filling from coming out during baking. There are couple of types of crimpers. One is a round,

hallow wheel with indentations, which sits on the end of round wooden handle. As it rolls along
 24

the pastry dough, it makes fluted edges. The other type of crimper is a thin wheel with wavy

edges on top of a round wooden handle. It also cuts fluted edges as I is rolled along the rim of th

pastry dough

There are so many practical and advisable tips to have a successful bakery business and one of

these tips is managing properly the cost of a product.

Techniques in baking bread

The following terms are often used to describe techniques for baking and various stages

of baked goods. Knowing what these words mean will make your baking experience much more

enjoyable. Bake blind is the technique for baking a pastry shell without a filling. The unfilled

pastry shell is pierced evenly with a fork to keep it, from puffing up during baking. The shell is

lined with aluminium foil or parchment paper and weighted to keep it from collapsing during

baking. Halfway through baking the foil or paper and weights are removed and the set pastry

shell continues to bake until it is browned.

The technique of beating involves rapidly and vigorously mixing ingredients in a circular

motion to change their consistency. Beating makes batters smooth and it adds volume to egg

whites and cream by incorporating air into them. Beating can be done either by machine with an

electric mixer or by hand.

Blanch is a technique for loosening and removing the outer skins of nuts and fruit. The

nuts or fruit are plunged into a pan of boiling water and left for approximately one minute. Then

they are removed with a strainer, skimmer or tongs and plunged into cold water to stop the

cooking process. The skin then easily slips off the nuts or peel off the fruit.
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“To blend” means combining ingredients together so they are smooth and uniform in

appearance and texture. Blending can be accomplished by hand or by machine such as with a

food processor, electric mixer or blender.

The technique of chilling involves reducing the temperature of food by stirring it cover

ice water of placing it in the refrigerator. Chilling firms the texture of many types of dough and

batters before they are baked.

Crimp is a technique used for sealing the edges of pastry or pie shells by pinching or

pressing them together. Crimping forms an attractive, decorative, fluted edge. It is accomplished

with a fork, the back of a knife blade, a crimper or fingers. This raised rim helps to hold in the

filling. A crimper is a hand-held tool that looks like a large pair of tweezers. It is used to imprint

decorative designs into and to seal the edges of pie and pastry shells.

Curdle occurs when a mixture coagulates or separates into liquid and solid elements.

Curdling takes place in milk and milk products, custards and sauces and when eggs are added to

beaten butter. Too much heat causes the liquid in eggs, milk and cream to cook and thicken or

gel into clumps, which results in a curdle mixture. Constant stirring and cooking over low heat

help to prevent this from occurring. Another method of prevention is to slowly stir a small

amount of hot liquid into eggs before mixing them with the remainder of the liquid. This brings

the eggs up to the temperature of liquid without curdling. This method is also called tempering.

Lemon juice and other acid can cause some mixture to curdle. If curdling happens when eggs are

added to butter, scrape down the sides and bottom of the mixing bowl with a rubber spatula and

slowly beat the mixture until smooth.

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The technique of cutting in is for combining solid fat, such as butter, with dry ingredients,

such as flour, until the mixture is in small pieces. This technique is used with many pie and

pastry dough. The pieces of fat should be about the size of small pieces of fat melt during baking,

steam fills the areas left and aids in rising. If the fat pieces are too tiny they will melt into the

dough. Cutting in is accomplished using a pastry blender, a fork, two knives, fingers, a food

processor, or a stand mixer with the flat beater attachment. Use a chilled fat and utensils and

work quickly when cutting in, so fat will not melt and lose its shape.

Drizzle is a technique for lightly pouring a liquid over surface in a thin, slow, steady

stream. Some coffee cakes, quick breads, cookies and other baked goods are drizzled with a thin

sugar glaze or icing or with piping chocolate as a decoration after baking or they may be drizzled

with melted butter before baking. To dust is to lightly sprinkle or coat pastry dough, pastries,

cakes, confections, or baking pans and work surfaces with a powdery substance such as flour,

confectioners’ sugar, cocoa powder or finely ground nuts. Firm Peaks is the stage where the

ingredient (egg whites or whipping cream) has been whipped until it forms peaks that stand

upright with a solid shape and are slightly pointed.

Flute and fold techniques. Flute is the technique for forming a decorative V-shaped or

scalloped design on the raised outer edge of a pastry shell or pie crust before it is baked. Fold is a

very common term in baking. It is technique used to combine a light (egg whites or whipped

cream) and a heavy (batter or custard) mixture and in the process, retain the air that has been

whipped into the lighter mixture.

To garnish is to embellish baked goods with edible decorations such as confectioners’

sugar, cocoa powder, nuts, fruits or whipped cream. A garnish normally complements an

ingredient in the baked item.

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Grease is what you do to prepare a baking pan with fat, such as butter, by rubbing it over

the inside of the pan. The purpose of greasing the pan is to prevent the baked item from sticking

to the pan. Baking pans are also dusted lightly with flour after they have been greased. Baking

pans can also be prepared by spraying them with a non-stick coating.

Kneading is the technique for working dough or other substances, such as marzipan, until

smooth and supple. To knead, gather the dough into a ball on a smooth work surface. Push it

away from you with the heel of your hand while pressing it down, and then gather it back into a

ball, folding it over itself. Give the dough a quarter-turn and repeal the process until the desired

smooth, elastic texture is reached. Melting turns an ingredient from a solid into a liquid by using

heat.

Mixing means to combine two or more ingredients by blending or stirring so that the

resulting mixture is well integrated and the ingredients are evenly distributed. Grinding is a

procedure that reduces food, such as nuts and seeds, to very tiny pieces or to a powder

consistency with a food processor or other utensil.

The technique of piping involves forcing a mixture, such as buttercream, choux pastry,

icing or chocolate, from a pastry bag to form shapes or decorative designs. Piping must be done

steadily and evenly while the pastry bag is held either straight up or at an angle above the piping

surface. The shape of the tip used determines the design and shape of the piped material. Piping

is often done using a parchment paper pastry cone to hold icing or melted chocolate.

“Preheat” means to bring an oven up to a specific temperature before baking. The initial

blast of hot air from a preheated oven is important to develop the structure of baked goods and to

create a crisp outer crust. Foods are pureed when they have been processed to a soft, smooth,
 28

thick texture in a food processor or a blender, or by passing through a sieve. When you allow

pastry dough to relax, it is called “resting”. This lets the gluten in the flour relax, causing the

dough to be less elastic when it is rolled out.

Ribbon is the consistency of a, batter or mixture, such as eggs and sugar, that has been

beaten until it is very thick and pale colored. When the whisk or beater is lifted above the bowl,

the batter drops slowly onto the mixture in the bowl in a ribbon-like pattern. This ribbon hold it

shapes for a few seconds before it sinks into the mixture.

Rolling out and scoring. Roll out means to shape pastry, tart, or pie dough into a large

piece to fit a specific pan. This is accomplished with a rolling pin on a smooth, flat surface.

Scoring involves making shallow cuts partway through dough to mark it for portions that will be

cut all the way through before or after baking or to make decorative designs.

You scrape down to remove batter or dough from the sides of a mixing bowl by using a

rubber or plastic spatula or pastry scraper. The spatula or pastry scraper is run around the side of

the bowl under the batter or dough, gathering it u, and the dough or batter is added to the bulk of

the mixture in the bowl. This ensures that all of the ingredients are evenly mixed.

Seizing is the term used to describe chocolate when it is mixed with a small amount of

liquid when it comes in contact with steam. When this happens, the chocolate becomes a lumpy

mass that is unusable.

Sifting and straining. Sift is a technique involves aerating dry ingredients such as flour,

cornstarch and confectioners’ sugar, to lighten the ingredient and break up any lumps. The

ingredient is placed in a sifter, strainer or drum sieve and pushed through the mesh screen. This

process separates the ingredient and adds air to it. Sifting results in a finer texture in baked
 29

goods. The technique of straining us used for filtering, pressing, sifting and pureeing liquid or

dry ingredients, which removes lumps and results in a smooth texture. Straining indicates that the

solids are eliminated.

Simmer is the technique for cooking a liquid mixture at a low temperature, approximately

185 degrees Fahrenheit, with bubbles barely breaking around outer edges. Soft peak is the stage

where the ingredient (egg whites or whipping cream) is whipped until it forms peak that can

barely hold their shape. If a small amount is scooped from the mixing bowl onto a rubber spatula

and held upright, the peak curves to one side or the other and does not stand straight up.

Stirring is the technique for mixing ingredients together in a slow circular motion until

they are thoroughly combined. Stirring is accomplished using a spoon, rubber spatula or a whisk.

Tempering is the technique used for stabilizing the cocoa butter in melted chocolate that

is used for dipping and molding so it doesn’t have unsightly white steaks and dots. Tempering

gives chocolate a shiny, unblemished appearance, a smooth texture that breaks with a crisp snap,

and makes chocolate easy to remove from molds because it shrinks as it cools. There are several

methods for tempering and all involve heating chocolate so that it melts completely, cooling it by

stirring to below the melting point of cocoa butter, and heating again to an exact temperature.

Whipping is a technique involves stirring rapidly in a circular motion to incorporate air

into a substance, such as cream or egg whites, which expands its volume. Whipping is

accomplished either by hand with a whisk or rotary beater or by machine with an electric mixer.

Costing of bread

As defined in the book entitled “Cost Accounting” (2016), N. De Leon et al (2016), cost

accounting is the field of accounting that is not just merely involves measuring, recording and
 30

reporting the information about costs but rather, helping the management in terms of planning

and controlling the operations thus generating a meaningful financial statements and other

reports. In connection with this, P. Guerrero in his book, “The accounting systems: The major

quantitative information system in almost every organization”, provides the basic concept of cost

accounting, that is, reporting to internal managers for planning and controlling operations and

formulating plans and policies, and reporting to external users such as stockholders, government

and other outside parties. In its broadest sense, cost accounting has three major areas as those

described. In as much as internal reporting caters to management and purposes, it is known as

management accounting. On the other hand, external reporting is known as financial accounting

because it is principally concerned with the historical and stewardship aspects of accounting. The

use of cost for valuation of inventory and cost of goods sold and gathering and summarizing data

to prepare financial reports for wide users is also financial accounting. Even so, the third

determination purpose simultaneously deals with the costing of products for inventory valuation

and income determination. It therefore fulfils the demands of external users and those of

management, and a small part of financial accounting to the extent that its product costing

function satisfies the needs of external reporting.

In determining the price that is to be applied, the cost of producing the product must be

known first. Cost as defined by M.B and G.A Cabrera in “Management Accounting concepts and

applications (2017)” is the value forgone or sacrifice of resources for the purpose of achieving

some economic benefit which will promote the profit-making ability of the firm. Also, it is an

outlay expenditure of money to acquire goods and services that assist in performing operations.

There are several cost terms that are used in management accounting; cost pool, cost object, cost

driver.
 31

The costs collected into meaningful groups are called cost pools. It is an account in which

a variety of similar costs are accumulated. It may be classified into: type of cost, source and

responsibility. Some cost pools are worked in process account, factory overhead control,

department 1, department 2, and so on. On the other hand, cost object is anything for which cost

is computed. Any item to where costs can be traced and has a key role in management strategy

can be considered a cost object. Products and services are generally cost objects. A critical step

in achieving a competitive advantage is to identify the key cost drivers in a firm. Cost driver, as

defined, is any variable that usually affects the level of total costs over a period of time.

Production, sales and number of hours may be classified as cost drivers.

Cost data that are classified and recorded in a particular way for a purpose may be

inappropriate and unsuitable for another. Due to this, R. Roque in his “Management Advisory

Service” book stated that costs are categorized into different purposes: as to type, function,

traceability to cost object, for decision making, and as to behaviour.

There are two (2) types of cost: product cost and period costs. Product cost is the cost

incurred to manufacture the product. The costs of the units sold during the period are expense as

cost of goods sold in the income statement while unsold units become costs of inventory and

treated as asset in the balance sheet. The cost that does not become the part of cost of the

inventory is called period cost. This is expensed in the time of incurrence. It includes

administrative, selling, and research and development. Manufacturing cost is one of the functions

of cost. This is all the costs incurred to convert raw materials into finished goods. This cost may

be sub-divided into two (2): direct manufacturing cost which is the direct material that can be

traced clearly into the product and direct labour for who really worked the product. The cost not

incurred in transforming materials into finished goods is the non-manufacturing costs composed
 32

of period costs. As to the traceability of the cost to the product – direct cost and indirect cost are

related to cost object, the only difference is the first one can be traced to that cost object and the

latter cannot be practically, economically and effectively traced to such cost object. Costs are

also use in decision making.

For that, relevant costs and differential cost, opportunity cost and sunk cost are use.

Relevant cost is the future cost that will differ under alternative. It only relates to a specific

management decision, and which will change in the future as a result of that decision. It is

extremely useful for eliminating extraneous and irrelevant information from particular

decision-making process. Differential cost is the difference between any alternative. This

concept is used when there are multiple possible options to use, and a choice must be made

to select one option and ignore the others. It may cause an increase (incremental cost) and a

decrease (decremental cost) from one alternative to another. The income or benefit given up

when one alternative is selected over the other is opportunity cost. It is use to examine all

reasonable alternatives before making a decision. This cost does not necessarily involve money.

It can also be an alternative that pertains to uses of time. Sunk costs are those costs already

incurred and cannot be changed by any decision made now or to be made in the future. It should

not be considered in deciding for an on-going project because it will not be any more recovered.

Cost reacts to changes in cost driver.

Cost behaviour may be variable cost, fixed cost, mixed cost and step cost. Variable cost

varies directly to the change in activity level or cost driver and the per-unit amount is constant in

relevant range and time period under consideration. If there is no production, there is no variable

cost. Unlike variable cost, fixed cost remains unchanged to the cost of production and the per-

unit amount varies inversely with the change in cost driver. Under fixed cost are committed fixed
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costs and discretionary fixed cost. Committed fixed cost is a long term in nature and cannot be

eliminated even for short period of time without affecting the profitability of the firm. One

example of this is the depreciation of a building and machinery. All of the non-current assets

depreciate, only land appreciates. The latter is the cost that can be controlled and managed by

firm. It usually arises from periodic decision by management to spend in certain level of fixed

cost such as research, maintenance contacts and so on. Discretionary fixed cost may be changed

depending upon the management decision. Variable cost and fixed cost may be put together at

the same time. Mixed cost has the both component of these. The best example of mixed cost is

the utility expense. Management sets a minimum amount utility expense can be. This minimum

amount has the concept of fixed cost. Whether the actual amount of expense is lower than the

minimum amount, it is the minimum amount that will be charged. On the other hand, the

variable part of utility expense is the amount in excess of the minimum. If the actual amount is

higher than of the minimum amount, the actual amount will be charged. The cost that does not

change steadily with changes in activity volume, but rather at discrete points is the step cost.

It shifts upward or downward by certain interval.

With this, many manufacturing firms seek to provide thorough supervision in addressing

the costs that they are accumulating in producing a product. The applications of management

techniques reduce cost and improve the position of the firm. It involves the recognition of the

importance of cost relationships among activities. Many factors are affecting the changes in the

business environment: (1) Increase in emphasis on customers as the important constituent of the

business. (2) Increase in both local and global competition. (3) Advancement in technology,

transportation and communication. Due to these factors, new concepts, ideas and methods are

introduced to the management that affects the decision-making process.

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Cost management is explained in (4) four steps: (1) Resource planning. In this initial

phase, the required resources to complete the project activities are need to be defined. Work

Breakdown Structures (WBS) and historical information of comparable projects can be used to

define which physical resources are needed. The required time, material, labour, equipment must

be known. Once the resource types and quantities are known the associated costs can be

determined. (2) Cost estimating. There are several costs estimating methods that can be applied

to predict how much it will cost to produce a product. The choice for the estimation method

depends on the level of information available. Analogous estimating using the actual cost of

previous, similar projects can serve as a basis for estimating the current project. Another option

is to use parametric models in which the project characteristics are mathematically represented.

Estimates can be refined when more information becomes available during the course of a

project. Eventually this results in a detailed unit cost estimate with a high accuracy. Remaining

uncertainties in estimates that will likely result in additional cost can be covered by reserving the

cost. (3) Cost budgeting. The cost estimate forms together with a project schedule the input for

cost budgeting. The budget gives an overview of the periodic and total costs of the project. The

cost estimates define the cost of each work package or activity, whereas the budget allocates the

costs over the time period when the cost will be incurred. A cost baseline is an approved time-

phased budget that is used as a starting point to measure actual performance progress. (4) Cost

control. It is concerned with measuring variances from the cost baseline and taking effective

corrective action to achieve minimum costs. Procedures are applied to monitor expenditures and

performance against the progress of a project. All changes to the cost baseline need to be

recorded and the expected final total costs are continuously forecasted. When actual cost

information becomes available an important part of cost control is to explain what is causing the
 35

variance from the cost baseline. Based on this analysis, corrective action might be required to

avoid cost overruns.

Reduction of production cost enables to achieve maximum effect at minimum

cost. In “Operations Management (10th edition)” book by J. Heizer and B. Render, there stated

some cost reduction ways that can really help the management. The thing that corresponds in

producing or doing products and services is the cost of quality. It is the cost of doing things

wrong. It is the price of non-conformance. If a defective unit can be still processed in one or

more stages and made as saleable product, it is still profitable to rework the product than to

throw it out. Although defective and spoiled product cannot be made as good as first class

finished unit, it can be corrected by adding materials, labour and factory overhead.

There are (2) two methods of accounting for the added cost to upgrade defective work.

(1) If the defective work is experience in regular manufacturing scenario but does not occur at

uniformly basis, or if the defective work is resulted from unusual event that is not expected to

recur, the added cost to correct defective unit should be charged to the Factory Overhead Control

account. If the defects are normal, the amount based on the past can be included in the

predetermined factory overhead rate. (2) If the defective work is expected to occur in uniformly

basis, or if it is directly attributable to the requirements imposed by the customer, the cost of

correcting the unit is charged to the job itself.

There are four major categories of costs that are associated with the quality. The first (2)

two categories are for the conformance cost and the last (2) two categories are for the non-

conformance cost. The first one is the prevention cost. It is the cost associated with reducing

potential defective goods and services. Cost can be prevented by proper training, statistical

process control activities, and technical support to given suppliers and quality improvement
 36

programs. Another category is the appraisal cost which is the cost related in evaluating the

products, process, parts and services. Some examples are inspecting of incoming materials,

testing of products, process control monitoring and product quality standards. The third one is

the internal failure cost which results from production of defective products or services before

delivery to customers. The cost of scrap, spoilage, rework cost, disposal of defective products are

some of the internal failure cost. The last category is the external failure cost. It occurs after

delivery of the product of defective products or services: lost sales arising returned products,

repair cost and so on. The first (3) three categories can be estimated but the last category is very

hard to quantify. It is believed that on balance, the cost of quality products is only a fraction of

benefits. The real lost is the failure to work aggressively at quality.

Cutting cost to increase profit. (1.) Payroll Cost. Effective displays that answer

customers' questions graphically may enable you to operate with fewer salespeople. Selectively

reduce your staff, dropping marginal people. (2) Store Hours. By being open too many days a

week or too many hours a day, you're spending unnecessary money in salaries and utilities. It is

more easily to operate if only five days a week, by this, there's no post in any business. That

means, in general, people may wait and come to business. Know your customers. (3) Improve

Buying Practices. Buy fast moving items in large quantities in order to qualify for discounts.

Some retailers increase profits by borrowing so they can purchase fast-turnover items at bargain

basement practices. Pay bills promptly to take advantage of manufacture's discounts team up

with other stores to buy in a quantity and obtain lower prices. Try to get price protection from

vendors over an extended period of time. (4) Organize your stockroom. Assign each shelf a

specific item. Reserve one section in the stockroom for the surplus goods. Instruct employees to

make two signs. Place one with surplus merchandise telling where the regular locations. Put the
 37

other on the shelf where the regular merchandise is, altering everyone the fact that there is

additional merchandise in stock at the second location. (5) Reduce your utility bills. Remind the

employees of the costs. Emphasize that higher utility bills leave less money for salaries. (6) Cut

advertising expenses-By evaluating the results of your advertising campaigns, you reduce costs.

(7) Reducing inventory. Reduce prices on merchandize to get rid it. At the time, you'll be able to

recover part of the loss; meanwhile, you can fill your shelves with moving items. (8) Encourage

faster payments of bills. To encourage speedier payment, instead of sending out letters to slow-

paying customers, consider making a tactful phone call. (9) Narrow your focus. By concentrating

his efforts on the most profitable aspect of the business, retailer makes more money than before.

a. Cut your losses. If you've expanded and made a poor choice, things may not get better as times

goes on. Cut your losses by closing down unprofitable outlets. A tighter market area could

improve your profit margin. b. Make the most selling opportunities- Increase your average

customers. Stimulate impulse purchases. Emphasize add-on sales; identify high profit

merchandise for your salespeople so they concentrate their efforts on these items. (Robbins,

S.,&Coulter,M.(2004).Management.(7thed.). Prentice Hall, New Jersey: Pearson Education

South Asia PTE LTD.)

Management of cost properly leads to a greater profit. As defined, cost volume profit

analysis is a systematic examination of the relationship among costs, cost driver and profit.

(Roque). There are (4) four elements of CVP analysis: Sales, total fixed cost, variable cost and

sales mix. It can be used in planning and decision making which may involve choosing the type

of product to produce and sell, pricing policy to follow, and marketing strategy to be used and

type of productive facilities to acquire.

 38

In providing goods and services to customers, TQM (Total quality management) must be

maintained. Total quality management, as defined, is the management of an entire organization

so that it excels in all aspects of products and services that are important to the customer. It is a

long term success through customer satisfaction. One of the TQM programs that is very helpful

to the management is Motorola’s Six Sigma.

In statistical sense, Six Sigma describes a process, product or service with an extremely

high capability. It is a measure of quality that strives for a near perfection. On the other sense, it

is a program designed to reduce the defects and failure to help to lower the costs to be

accumulated, save time and improve customer satisfaction. Six Sigma is a comprehensive system

which is a strategy, a discipline and set of tools that is necessary in achieving and sustaining

business success. It is a strategy because it merely focuses in providing the customer a total

satisfaction. It is a discipline because it follows the formal Six Sigma Improvement model. This

model is known as DMAIC. (1) Defines the project’s purpose, scope and output and identifies

the required process information, keeping in mind the customer’s definition of quality. (2)

Measures the process and collects data. (3) Analyses the data, ensuring repeatability (results can

be duplicated) and reproducibility (others get the same result). (4) Improves, by modifying or

redesigning, existing process and procedure. (5) Controls the new process to make sure

performance levels are maintained. Motorola developed Six Sigma to aid the customer

complaints about its products and to also stiff the competition its competitors. The company first

set a goal of reducing defects by 90%. Implementing Six Sigma is a “big commitment”, says the

head of the program at Praxiar, a major industrial company. Successful Sigma projects are

clearly related to the strategic direction of company.

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Another method in reducing cost is the JIT (just in time) system. Collectively gathered in

Cost Accounting by N. De Leon and Management Advisory Services reviewer by R. Roque, in

JIT, what you need becomes only available just in time you will need it. It requires raw material

to be delivered at exactly point they are needed and just when they are to be initiated in the

production process. This arrangement eliminates the need for warehouse space that has been

considered an expensive part of any manufacturing operations. JIT method is characterized by

companies intentionally maintain relatively small size level of inventory.

There are (5) five key elements in the operation of JIT system. (1) A company must learn

to rely on a few suppliers who are willing to make frequent deliveries in small lots. (2) A

company must improve its product flow lines by creating an individual flow line for each

separate product. (3) A company must reduce the setup time between production runs. One way

to do this is through employee training. Another way is through automation by creating a flexible

manufacturing system (FMS). An FMS is just one part of the overall concept of computer-

integrated manufacturing in which a company’s business functiond are integrated with its

manufacturing function. (4) A company must develop a system of Total Quality Control (TQC)

over its parts and materials. In the absence of TQC, it would be impossible to successfully

implement JIT system. TQC starts with suppliers, who must inspect goods before they are

shipped to ensure that the goods are free of defects. The company’s own employees are

responsible to inspect their own work before sending partially completed units on to the next

workstation. (5) A company must develop a flexible workforce. Since the plant layout in JIT

environment is different from that of a conventional factory, workers must be multi-skilled. In

addition to being able to operate all of the machines in a manufacturing cell, workers must also

be able to perform routine maintenance on these machines.

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According to the study, “Cost Management Practices and its effect to the profitability of

Dealo Koffee Klatch Bakeshop in Lucena City for the years 2009-2011” of R. Celis and I. Rufo,

(2013) the researchers concluded that the company’s strategic practices lead to minimize the cost

of sales and operating expense, thus, maximizing their rate profitability.

Another study that is related to this research is “Cost management practices of Vegie Mix

Food Corporation” 2014 by M.C Cabrera and J.M Ricafort. Vegie Mix Food Corporation is one

of the industries in the central part of the Philippines that immersed in food processing and

makes an alteration of food products into other forms. It is a company which engages in business

of processing goods such as vegetables, fruits, pastries and sauces to trade the same in

wholesome or retail business. In their research, they concluded that sales and cost of sales of

Vegie Mix Food Corporation are directly proportional. An increase in sales results to an increase

in the cost of sales considering the demand and supply relationship with the stable price and

demand for the finished goods. The strategic practices that the company are using lead to the

effective management of costs and expenditures that result to stabilize increase rate of

profitability. Net Income from sales shows that the business is profitable with an unstable trend

of returns that is attributable to the nature of the demand and supply of the company's products.

In cost management, it is also important to address the inventory in efficiently and

effectively manner. According to Lea R. Dopson, David K. Hayes, Jack E. Miller in their book

entitled “Food beverage and Cost control”, a desired level of inventory must be maintained.

Inventory management seeks to provide appropriate amount of an ingredient you anticipate to

use before purchasing that item again and a minimal safety stock which is the extra amount of

that ingredient you decide to keep on hand to higher than anticipated demand. With too little

inventory, you may run out of products and therefore reduce customer satisfaction and inversely
 41

related, with too much inventory, waste, theft, and spoilage can become excessive. The ability to

effectively manage the inventory process is one of the best skills a manager can acquire

especially when you are in the field. Regardless of the storage type, food and related products

should be stored nearly in some logical order. This makes them easier to find and to count when

the need arises. You may decide, for example to arrange your stored products on the basis of

how often your staffs use them. That is, frequently used items are placed near the front of the

storage area. When few items constitute a majority of the sales volume in your unit, this can be

an effective storage technique. No matter what type of storage system you choose, make sure

your inventory sheet matches the physical order of items in storage. This saves time in taking

inventory and it results in fewer errors. It is also important to note that the objective of a near

storage area is to both maximize storage space and minimize the time it takes to locate the item

in storage. When possible, the storage area should be in close proximity to the area in which the

product will be used. This reduces unnecessary time lost in traveling to remote storage areas to

secure needed producers. In this regard, proper storage techniques, while assisting on lowering

the cost of food products, also help in reducing costs associated with labor. It is sometimes

amazing how long it can take an employee to go to the storeroom for a can of beans! In an

improperly maintained storage area, employees can claim that it took a long time to “find” the

desired product. When a storage area as well located, properly labelled, kept clean and monitored

regularly problems, such as this will not occur.

It is also important to address the safety and quality of the product because higher quality

and safer products will prevent any unnecessary events that may result in incurring higher cost. It

is fact that food product quality rarely improves with increased storage time. In most cases, the

quality of ingredients you buy is at its peak when the product you ordered is delivered to you.
 42

From then on, the products can only decline in freshness, quality and nutrition. The only

exception to this might be the gourmet restaurant that elects to age some of its own products. The

general case, however, is that your storeroom clerk must make every effort to maintain food

quality in all of your storage areas, since food quality tends to diminish during the storage

process. The primary method for ensuring product quality while in storage is through proper

product rotation and high standards of storeroom sanitation. Storage areas are excellent breeding

grounds for insects, some bacteria and also rodents. To protect against these potentially

damaging hazards, you should insist on a regular cleaning of all storage areas. Refrigerators and

frozen-food holding units remove significant amount of stored product moisture, causing

shrinkage in meats and produce and freezer burn in poorly wrapped or stored items kept at

freezing temperatures. Unless they are built in, refrigerators and frozen-food holding units should

be high enough off the ground to allow for easy cleaning around and under them to prevent

cockroaches and other insects from living beneath them. Both refrigerators and frozen-food

holding units should be kept six to ten inches from walls to allow for the free circulation of air

around and efficient operation of the units. Drainage systems in refrigerators should be checked

at least weekly. Ideally, frozen-food holding units and refrigerators should have externally

visible internal thermometers, whether they are read as digital display or in the more traditional

temperature scale. In larger storage areas, hallways should be kept clear and empty of storage

materials or boxes. This helps both in finding items in the storage area and in reducing the

number of hiding places for insects and rodents.

Synthesis

The above literature and studies, the researchers discussed certain variables that affects

the relationship of cost management practices as an impact in their financial performance. Most
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of the facts are related to cost management definition and definition of other variables. But for

this study, the researchers focused on the practices used in cost management and in evaluating

the impact of the practices. Also the studies and literature that are mentioned above are similar to

the current study for all of them discuss about the effects and impact of cost management

practices to financial performance of businesses specifically those in the bakery industry.

The related literature and studies were gathered and analysed by the researchers to which

they believe have bearing on the achieving the objectives of the study. Moreover, above

mentioned studies served as basis for formulating the framework of the study.
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Conceptual Framework

The conceptual framework are based in the process in finding and analysing the

contributions of cost management practices of Caller Maior Bakery & Pasalubong and Mendoza

Bakery using variables present in the financial statements that shows cause-and-effect

relationship.

These variables are classified into (2) two: the independent variables and dependent

variables.

The independent variables consisted of the profile of Mendoza Bakery and Calle Maior

Bakery & Pasalubong which are consist of historical Background, organizational structure,

capital structure and technical structure, and its cost management practices in terms of direct

costs which pertain to materials and labour, and operating expenses. Dependent variable pertains

to the profitability that was obtained using different financial ratios: Gross Profit Margin, Net

Profit Margin, Return on Sales and Inventory turnover. The analysis also recognized the

presence of different problems encountered by the business that may impair the company’s

development.
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Research Paradigm

Independent Variables Dependent Variables

Profile of Calle Maior Bakery& Contributions to the profitability

Pasalubong and Mendoza Bakery in terms of:

 Historical Background
 Gross Profit margin
 Organizational Structure
 Capital Structure  Net Profit Margin

 Technical Structure  Return on sales

a. Physical Structure
 Inventory turnover
b. Technical Process

Costing method for:

 Materials
 Labor
 Overhead

PROBLEMS

Figure 1.Independent and Dependent Variables of Cost Management