For the purpose of learning and furtherance of knowledge in

Management Accounting II, we have searched and were able to find an entity
which can be the subject of this study. The Bakers Hill Corporation proved to
be eligible, and because we believe that their development is sustainable.
The Bakers Hill Corporation is a decentralized organization. They use
segment reporting to provide information needed by the manager to
determine profitability of project lines, divisions, sales territories and other
segments of a company. Its sources of income from comes from Bakers Hill
Souvenir Shirt Printing, Bakers Kitchen (Freshly Made Pizza), Bakers Kitchen
(Restaurant), The Pica-Pica Store and their main source of income is the
Bakers Hill Bakery. The entity applies quantitative techniques to be able to
optimize resources in production by the use of Learning Curve. Learning
Curve is an efficiency arising out of experience. Since Bakers Hill is
producing the best hopia for years, it now has all the experience and
knowledge needed in production. The bakers of hopia accurately know the
exact measures and ways to produce the delicious hopia so the errors are
minimizing the cost in production. Also, the expertise of workers makes the
production faster thus producing more units of hopia. On the various
segments, the Inventory Model, the Economic Order Quantity, Probability
Technique is also being used. In relation to Bakers Hill Segments: Souvenir
Shirt Printing, Bakery, Pizzeria, Restaurant and Snack bar, inventory model is
important. In order to prevent chaos and lack of supplies the management
implements the use of reorder point. To provide the best quality we learned
that some of the supplies are ordered from Manila especially their machines.
So the management has maintained a reorder point to raw supplies in every
segment to make sure that demand of the customers is always met. Together
with the reorder point Bakers Hill also implements Economic Order Quantity
(EOQ). Probability technique is also one of the important applications on the
bakerys different breads and other products. The management keeps the
game of introduction of new possible more profitable products and phasing
out of old not so much profitable products. And they do this by method of

probability. The Bakers Hill Corporation does not use the Activity Based
Costing (ABC). Activity Based Costing (AB Costing) is too difficult for the
corporation to implement. Since the Bakers Hill only outsource from Manila
the accounting and auditing part for their company. It is too expensive to
implement and the benefits may not exceed the cost of its execution and
besides, is not yet a necessity for the company. Up until now the Bakers Hill
uses the traditional costing. It is the type of costing where it depends on the
volume of products and the total cost will simply be divided by the units
produced. Then it will be added to materials cost and labor cost and the total
product cost is determined. The simplicity of using traditional costing is the
main reason why Bakers Hill Corporation sticks to it for the longest time.
Consisting of an integrated system of performance measures that are
derived from and support the companys strategy, the company uses the
Balanced Scorecard that is composed of four perspectives in evaluation of
the its performance. The four perspectives are financial, customer, internal
process as well as learning and growth perspective. In terms of Financial
Perspective, It measures the profitability and market values among others
and an indicator of how well the corporation satisfies its owners and
shareholders. In the case of Bakers Hill Corporation where it is now divided
by the siblings the financial performance is getting better every year. This
was according from our interview, it may be because the Baker s Hill is
constantly improving and widening the possible services for the customers
thus their source of income broadens also. They usually used the measures
of

Return

on

Investment

and

Economic

Value

Added.

In

Customer

Satisfaction, It measures the quality service and low cost among others. An
indicator of how well the corporation satisfies its customers. More than
generating income the Corporations goal is to provide a good local
destination for the tourist of Palawan
The Bakers Hill Corporation uses the measure of new customer,
repeating customer and ratings from customers usually in form of feedback

or recommendation in the internet. Internal Business Process measure

effectiveness and efficiency in producing the products or services of an
entity. The Corporation uses the measures of number of new products vs.
planned. With increasing tourist every year, the Bakers Hill Corporation
improves their internal business by adding souvenir shirt printing and local
delicacies products. The Corporation knows that they attract customers by
beautiful views that is why they continuously improve the place. The Bakers
Hill Corporation knows the game of inviting tourist and persuading them to
buy their products thus increasing sales. Lastly, in terms of Innovation and
Learning Bakers Hill is never afraid to change. It is very evident on how they
run the business. There is always a constant upgrade in the place and
widening the food product. The Bakers Hill Corporation measures by
employee satisfaction rating and employee productivity. In conclusion,
Bakers Hills continuous improvement is now not a question from their
expertise and conservatism in running the business. They continue to be the
best in the business by minimizing the cost of destruction by quantifying the
possible outcome of every decision from result using mathematical terms
and making sure of the quality of work of every segment and its
management.
Accounting Rate of Return is the measurement used by company to
make sure that the investments are properly and appropriately selected. The
ability to generate cash and profit of an investment is the primary concern of
the company in choosing such investment.