Businesses such as Yum Yum Myanmar, an instant noodle manufacturer in the food

sector, rely heavily on process costs (Yum Yum Myanmar, n.d.). Process costing provides the

owners with important information about their production costs at every level of the

manufacturing process. For example, process costing aids in precisely assigning expenses

like labor, raw materials, and overhead to each batch of items in a food manufacturing setup

where components are processed and turned into completed products. Yum Yum Myanmar

can thus calculate the cost per unit of any product line, enabling well-informed pricing

decisions and guaranteeing profitability.

Additionally, Yum Yum Myanmar uses process costing to pinpoint inefficiencies and

streamline its production procedures. Through cost analysis at various production phases, the

organization may identify places where resources are being misused or squandered. For

instance, management can look at why labor costs are disproportionately high in one stage

compared to others and determine if this is because of inefficient machinery or a need for

worker training. Yum Yum Myanmar may use the results of this research to put initiatives

into place that will increase productivity, decrease expenses, and simplify operations—all of

which will increase overall profitability.

Process costing also gives Yum Yum Myanmar useful information for strategy

planning and performance assessment. The business may determine which of its endeavors

are the most profitable and direct resources in that direction by contrasting the expenses and

results of various manufacturing methods or product lines. If, for example, some snacks have

larger margins than others because of lower manufacturing costs or more demand,

management might concentrate on growing those product lines or making equipment

investments to increase efficiency even more. Process costing also aids Yum Yum Myanmar

in establishing reasonable goals and standards for cost management, allowing them to track
their progress over time and make wise choices that will promote long-term success in the

cutthroat food sector.

 Reference

Yum Yum Myanmar. (n.d.). Home. Retrieved from.

https://yumyummyanmar.com/?