Determination of the manufacturing cost by UEP method: a case study in the cold storage sausage making industry

Abstract

This article aimed to answer the following research question: how to show the manager of a company that produces sausages’ the positive impacts of knowing the unit cost of processing? The objective was to verify the possibility of applying the UEP method to determine the cost of processing the products manufactured by a company of this type. A descriptive methodology was used in a case study format, with a qualitative approach. A literature review was initially conducted regarding the UEP method, approaching aspects such as history, concepts, guiding principles, steps to be taken for implementation, benefits and associated limitations. Then the main characteristics of the case study conducted through a brief description of the focused company and the steps followed to implement such a method of costing were presented. Subsequently, the informational benefits highlighted by the study and the limitations of methodology were listed . It was concluded that the method is applicable in the context of this company.

Keywords

• Cost of Transformation
• Cold Storage Company
• UEP Method
• Benefits and Limitations
• Case Study