PRINCIPLE OF ACCOUNTS

SCHOOL BASED ASSESSMENT

SBA

Group Members:
Ashani Myles 1000720290 Marisha Clarke
Shadazia Baker 1000720745 Reneto Edwards 1000720613
Alfreka Parnell 1000720303
Teacher: Ms. Anderson
Subject: Principles of Accounts (POA)
Centre Number: 100072
Territory: Jamaica
Year: 2020
 Table of Content
Content Page Number

Topic 3

Objectives 4

Background 5

Methodology 6

Data Collection Instrument 7-10

Presentation and Analysis of Data 11-25

Conclusion 26

Recommendation 27

2
 Topic

An investigation into the cost of production for chicken on the school farm.

3
 Objectives

 To find out the price incurred in purchasing agricultural products on the school farm.

 To examine the income earned from the production of chicken on the school farm.

 To determine the measures that could be implemented to reduce production cost of

chicken.

4
 Background

The objective of this project is to investigate the cost of production for chickens on the school

farm. The school farm started operation in September of 2015, it is operated by the head of

department (H.O.D) for the agriculture department. The chicken that is reared is used to provide

chicken for the canteen and also sell to buyers outside of the school. The researchers noticed

there was a reduction in the supply of chicken to the canteen therefore, this was important to

study, as researchers wanted to know how high production cost for chickens may affect the

amount of chicken produced. This research can help the researchers in their respective field of

study to conduct similar investigation to make management decisions and manage income and

expenses. The end product of this research can be given to the HOD, to have an overview of the

cost of producing chickens also to help agriculture students to have a hands on experience.

5
 Methodology

Questionnaires and an interview were used to collect data. The questionnaire consist of

twelve closed ended question will be used to collect data from respondents. This method was

chosen because it can obtain data at an easy and efficient way. The questionnaire was issued and

collected on January 16th, 2020, the data was collected from students at Central High School. The

researcher faced problems in collecting data as some students didn’t want to participate in the

research. The collected data will then be presented on graphs and charts using percentages to

represent the data.

Five open ended interview questions will be used to collect data. This method was chosen

as it gives respondents an opportunity to share their opinion on the topic being investigated. The

interview was done on January 16th, 2020, with a student of Central High School. An issue that

the researcher faced was respondent didn’t understand the questions being asked.

6
 Data Collection Instrument

Objective 1

To find out the price incurred in purchasing agricultural products on the school farm.

1. How often does the farm purchase chicken?

A. Monthly

B. Every six weeks

C. Every eight weeks

D. Randomly

2. How many chicks are purchased and the range of the price?

A. 50 chicks-$5,000-$10,000

B. 100 chicks-$10,000-$15,000

C. 150 chicks-$15,000-$20,000

D. 200 chicks-$20,000-$30,000

3. How much feeding for the chickens are purchased and the range of the cost?

A. 25 bags -$40,000-$45,000

B. 30 bags-$45,000-$55,000

C. 35 bags-$55,000-$65,000

D. 40 bags-$65,000-$75,000

4. What are some resources in the production of chicken that remained as a fixed cost?

A. Chicks

B. Feeding

C. Medicine

D. All of the above

7
 5. What are some of the variable cost for the production of chicken?

A. Cost of medicine

B. Cost of chicks

C. Cost of feeding

D. All of the above

6. What range does total amount for the production of chicken amount to?

A. $70,000-$100,000

B. $100,000-$130,000

C. $130,000-$150,000

D. $150,000 and over

Objective 2

To examine the income earned from the production of chicken on the school farm.

7. How many chicken does the school farm produce in each batch?

A. 50

B. 75

C. 100

D. Over 100

8. What is the status of income earned on chickens?

A. Below Average

B. Average

C. Above Average

D. Neither

8
 9. Does the profit for the sales of chicken remain constant?

A. Yes

B. No

10. What percent of sales represent profit?

A. 15%

B. 20%

C. 30%

D. 50% or more

Objective 3

To determine the measures that could be implemented to reduce production cost of chicken.

11. What can cause a high production cost for chicken?

A. Not having a budget

B. Purchasing more resources than what is required

C. Excess resources is wasted

D. No specific reason

12. How can a reduction in cost of production for chicken be implemented?

A. Make agriculture students kill chickens to reduce wage bill

B. Get sponsorship to provide chicken

C. Prepare a budget

D. All of the above

9
 Interview Question

1. How many chicks are purchased and the range of the price?

2. How much feeding for the chickens are purchased and the range of the cost?

3. What is the status of income earned on chickens?

4. What can cause a high production cost for chicken?

5. How can a reduction in cost of production for chicken be implemented?

10
 Presentation and Analysis of Data

How often does the farm purchase chicken?

0.45
45%
40%
35% 35%
Percentage of Respondents

30%
25%
20%
15%
0.15
10%
5%
0%
0.05
Monthly
Every six weeks
Every eight weeks
Randomly

Respondents

Monthly Every six weeks Every eight weeks Randomly

Figure 1

In figure 1 it was shown that 45% of respondents believe the farm purchase chicken on a

monthly basis, 35% believed chickens are purchased every six weeks. 15% stated that chicken is

purchased every eight weeks, while 5% were of the opinion that chickens are purchased

randomly.

11
 How many chicks are purchased and the range of the price?

0.15
200 chicks $20,000-$30,000

150 chicks $15,000-$20,000 0.2

Respondents

200 chicks $20,000-$30,000

150 chicks $15,000-$20,000
100 chicks $10,000-$15,000 100 chicks $10,000-$15,000
35% 50 chicks $5,000-$10,000

50 chicks $5,000-$10,000

0.3
0% 10% 20%
30% 40%

Percentage of Respondents

Figure 2

In figure 2 it was asked, how many chicks are purchased and the range of the price, 35% of

respondents stated that 100 chicks were bought for $10,000-$15,000, 30% believed 50 chicks

were purchased for $5,000-$10,000, 20% believed 150 chicks were bought for $15,000-$20,000,

while 15% believed 200 chicks are bought for $20,000-$30,000. In the interview conducted the

respondents stated that the farm purchase 150 chicks for $40,000-$50,000.

12
 How much feeding for the chickens are purchased and the range of the cost?
15%

10%

45%

30%

25 bags $40,000-$45,000 30 bags $45,000-$55,000

35 bags $55,000-$65,000 40 bags $65,000-$75,000

Figure 3

In figure 3 above shows that 45% of respondents stated that 25 bags of feeding were bought for

$40,000-$45,000, 30% of believed, 30 bags were bought for $45,000-$55,000, while 15% stated

that 40 bags are purchased for $65,000-$75,000 another 10% stated that 35 bags are purchased

for $55,000-$65,000. In the interview that was conducted respondents clearly stated that 20 bags

of feeding were purchased for $20,000 to $25,000.

13
 What are some resources in the production of chicken that remained as a fixed cost?
chicks feeding Medicine all of the above 0.45
45%
40%
Percentage of Respondents

35%
30%
25% 0.2 20%
20% 0.15
15%
10%
5%
0%
chicks feeding Medicine all of the above
Respondents

Figure 4

45% stated that chicks, feeding and medicine remained as fixed cost, 20% stated that chicks and

feeding remained as fixed cost respectively,15% stated that medicine remained as fixed cost.

14
 Wh at are so me o f th e v ariable co st fo r th e p ro d u ctio n o f
chick en ?
5%
10%

20%

65%

Cost of medicine cost of chicks cost of feeding all of the above

Figure 5

65% of respondents believe that cost of chicks, feeding and medicine were variable cost in the

production of chicken. 20% stated that cost of feeding was variable cost, 10% believed that cost

of medicine is variable cost, 5% believes that cost of chicks is variable cost.

15
 What range does the total amount for the production of chicken amount to?

0.15
$150,000 and over

0.25
$130,000-$150,000
Respondents

$150,000 and over

$130,000-$150,000
$100,000-$130,000
$100,000-$130,000 25% $70,000-$100,000

$70,000-$100,000
0.35
0% 5% 10% 15% 20% 25% 30% 35%
Percentage of Respondents

Figure 6

35% of respondents believed the range that the production of chicken amount to $70,000-

$100,000, 25% said $100,000-$130,000 and $130,000-150,000 respectively, while 15% said

$150,000 and over.

16
 How many chicken does the school farm produce in each batch?

15%

45% 10%

30%

50 75 100 Over 100

Figure 7

45% stated that the school produces over 100 chicken in every batch, 30% believed 100 chickens

are produced each batch, 15% said 50 chickens are produced each batch, while 10% stated that

75 chickens are produced in each batch.

17
 What is the status on income earned on chicken?
Neither; 45%
45%
40% Above Average;
Percentage of Respondents

35% 30%
30%
25% Below Average;
20% 15%
15% Average; 10%
10%
5%
0%
Below Average Average Above Average Neither
Respodents

Figure 8

45% of respondents believed that income earned on chicken were neither below average,

average or above average, 30% believed income was above average, 15% stated that income was

below average, while 10% thought income earned was average. In the interview the respondent

revealed that the income gained on chicken changed on a regular basis as there is spike and dip

in income earned when chicken is reared due to full payment or short fall in payment from

buyers.

18
 Does the profit for the sales of chicken remain constant?

No
respondents

Yes

0% 10% 20% 30% 40% 50% 60% 70%

Percentage of Respondents

Figure 9

In figure 9 it was asked that does the profit for the sales of chicken remain constant,70% of

respondents believe that profit for sale of chicken does not remain constant, 30% believed it

does.

19
 What percentage of sales represent profit?

20% 20%

20%

40%

15% 20% 30% 50% or more

Figure 10

In figure 10 it was asked what percentage of sales represent profit, 40% of respondents believe

20% of sales represent profit, while 20% believed 30%, 20% and 15% of sales represent profit

respectively.

20
 What can cause a high production cost for chicken?
40%
35%

15%
10%

Not having a budget Purchasing more Excess reource is No specific reason

resources than what is wasted
required
Respondents

Figure 11

40% of respondents stated that because excess resources are wasted there can be a high

production cost for chicken, purchasing more resources than what is required was selected by

35% of respondents, 15% stated that there was no specific reason while 10% believed that not

having a budget can cause high production cost.

21
 How can a reduction in cost of production for chicken be implemented?

Percentage of Respondents 40%

30%
20%
10%
0%
Make agriculture Get sponsorship to Prepare a budget All of the above
students kill provide chicken
chickens to reduce
wage bill

Respondents

Figure 12

In figure 12, 40% stated that agriculture students should kill chickens, getting sponsorship and

preparing a budget can all be implemented to reduce production cost for chicken on the school

farm, 35% believes that a budget should be prepared, 15% stated that agriculture students should

kill chickens to reduce wage bill, while 10% stated that the farm should seek partnership to

provide chicken. In the interview the respondent believed to have a reduction in cost of

production for chicken, the HOD should seek to find cheaper suppliers of chicken and also raise

the cost at which the school farm sells chicken to balance the financial books of the farm.

22
 Figure 1, indicates that 45% of respondents believe the farm purchase chicken on a

monthly basis, 35% believed chickens are purchased every six weeks. 15% believed chicken is

purchased every eight weeks, 5% were of the opinion that chickens are purchased randomly.

How many chicks are purchased and range of the price, 35% stated that 100 chicks were

bought for $10,000-$15,000, 30% believed 50 chicks were purchased for $5,000-$10,000, 20%

believed 150 chicks were bought for $15,000-$20,000, while 15% believed 200 chicks are

bought for $20,000-$30,000. In the interview conducted the respondents stated that the farm

purchase 150 chicks for $40,000-$50,000.

Figure 3 indicates that 45% of respondents stated that 25 bags of feeding were bought for

$40,000-$45,000, 30% believed, 30 bags were bought for $45,000-$55,000, 15% believe 40 bags

are purchased for $65,000-$75,000 another 10% stated that 35 bags are purchased for $55,000-

$65,000. In the interview that was conducted respondents believed 20 bags of feeding were

purchased for $20,000-$25,000.

What are some resources in the production of chicken that remained constant, 45% said

chicks, feeding and medicine remained as fixed cost, 20% stated that chicks and feeding

remained as fixed cost respectively,15% stated that medicine remained as fixed cost.

What are variable cost in the production of chicken, 65% of respondents believe that cost

of chicks, feeding and medicine were variable cost in the production of chicken. 20% stated that

cost of feeding was variable cost, 10% believed that cost of medicine is variable cost, 5%

believes that cost of chicks is variable cost.

23
 The range the total amount for the production of chicken amounts to, 35% of

respondents believed the range that the production of chicken amount to $70,000-$100,000, 25%

said $100,000-$130,000 and $130,000-150,000 respectively, while 15% said $150,000 and over.

Asked how much chicken the farm produce in each batch, 45% stated that the school

produces over 100 chicken in every batch, 30% believed 100 chickens are produced each batch,

15% said 50 chickens are produced each batch, while 10% stated that 75 chickens are produced

in each batch.

Describe the income on the farm, 45% of respondents believed that income earned on

chicken were neither below average, average or above average, 30% believed income was above

average, 15% stated that income was below average, while 10% thought income earned was

average. In the interview the respondent revealed that the income gained on chicken changed on

a regular basis as there is spike and dip in income earned when chicken is reared due to full

payment or short fall in payment from buyers.

What does the profit for the sales of chicken remain constant,70% of respondents believe

that profit for sale of chicken does not remain constant, 30% believed it does.

What percentage of sales represent profit, 40% of respondents believe 20% of sales

represent profit, while 20% believed 30%, 20% and 15% of sales represent profit respectively.

24
 What can cause a high production cost for chicken, 40% of respondents stated that

because excess resources are wasted there can be a high production cost for chicken, purchasing

more resources than what is required was selected by 35% of respondents, 15% stated that there

was no specific reason while 10% believed that not having a budget can cause high production

cost. In the interview conducted the respondents stated that the fact that chicken is being

eaten/bought at a regular level, the producers are satisfied and would raise it/increase sales

because they know the consumers would purchase it.

How can a reduction in cost of production for chicken can be implemented, 40% stated that

agriculture students should kill chickens, getting sponsorship and preparing a budget can all be

implemented to reduce production cost for chicken on the school farm, 35% believes that a

budget should be prepared, 15% stated that agriculture students should kill chickens to reduce

wage bill, while 10% stated that the farm should seek partnership to provide chicken. In the

interview the respondent believed the HOD should find cheaper suppliers and also raise the cost

at which the farm sells chicken to balance the finance

25
 Conclusion

1. It can be concluded that respondents purchase chicken on a monthly basic, purchase 100

chicken for $10,000-$15,000 and 25 bags of feeding were bought for $40,000-$45,000.

2. It can be concluded that respondent purchase over 100 chicken in every batch, the profit

for sale of chicken doesn’t remain constant and 40% of sales represent profit, income on

chicken was neither below average, average nor above average.

3. The respondents have stated, because excess resource are wasted there is high production

cost for chicken and agriculture students should kill chickens, getting sponsorship and

preparing a budget can reduce production cost for chicken on the school farm.

26
 Recommendation

In order to achieve a low production cost for chickens, persons who operate the school farm

should prepare a budget to have an overview of the income and expenditure on the school farm.

The HOD can seek outside help to provide resources to alter the spending of the school.

27