costing ppt ( presentation)
TRANSCRIPT
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Subject- Cost Accounting
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Cost accounting is the process of classifying,recording and appropriate allocation of
expenditure for the determination of the costsof products or services, and for the
presentation of suitably arrange the data forthe purpose of control and guidance ofmanagement.
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Name of company
A. S. Chemopharma Private Limited
Established by
Dr. T. N. Sharma
Established in
1971
Managing Director
Dr. T. N. Sharma
Products
Main Products- Sodium saccharin,
insoluble saccharin,
Other products- O/P TolueneSulfonamide Mixture, Para Toluene
Sulfonyl Chloride, Ortho Toluene
Sulfonamide, Organic Intermediates,
Inorganic Intermediates, Dilute
Chromic Acid (Green Acid)
Address
Village Kamba Post, Varap Kalyan
Road, Murbad Road, District, Thane,
Maharashtra - 031858, India
Workers (Skilled Unskilled)
25 Workers
Skilled- 15Unskilled-10
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Category Subcategory
Fine Chemical
Saccharin Sodium
Saccharin InsolublePara Toluene
Sulfonyl Chloride
Ortho Toluene
SulfonamideO/P Toluene
Sulfonamide
Mixture
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Eco friendly
Stable
PureAccurate composition
Industry relevant pH value
Resistant to high temperature,
chemical reactions
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Saccharin is an artificial sweetener.
The basic substance,benzoic sulfilimine, has effectively
no food energy and is muchsweeter than sucrose, but has abitter or metallic after taste,especially at high concentrations. It
is used to sweeten products
such as drinks, candies, cookies,
medicines, and toothpaste.
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Type Of
Costing
Technique
Historical
costing
Standardcosting
Uniform
costing
Marginalcosting
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What type of costing techniques you follow?
Answer-
The Company follows standard costing.
Standard costing and the related variances is a valuablemanagement tool.
If actual costs are greater than standard costs the variance isunfavorable
He believes that More on Production leads to cost Reduction.
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-It is chemical manufacturing firm
-Involved many processes while producing one product
-The production is continuous
-The product is homogeneous
-The process is standardized
-Output of one process become raw material of another process
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The output of the last process is transferred to finished stock
-Costs are collected process-wise
-Both direct and indirect costs are accumulated in each process
-If there is a stock of semi-finished goods, it is expressed in
terms of equivalent units
-The total cost of each process is divided by the normal output of that
process to find out cost per unit of that process.
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Cost Behavior
Fixed Costs
machinery, building,
depreciation
Variable Costs
fuel, coal; furnaceoil, LPG, power
cost, wages, RawMaterial
Semi-VariableCost
workers salary
(overtime),
telephone bill
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Particulars %
Opening Stock of Raw Material
Add: Purchase of Raw materials
Add: Purchase Expenses
Less: Closing stock of Raw Materials
Raw Materials Consumed
Direct Wages (Labour)
Direct Charges
Prime cost (1) 40
Add :- Factory Over Heads:
Factory Rent
Factory Power
Indirect Material
Indirect Wages
Supervisor Salary
Drawing Office Salary
Factory Insurance
Factory Asset Depreciation
Works cost Incurred 50
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Particulars %
Opening Stock of Raw Material
Add: Purchase of Raw materials
Add: Purchase Expenses
Less: Closing stock of Raw Materials
Raw Materials Consumed
Direct Wages (Labour)
Direct Charges
Prime cost (1) 40
Add :- Factory Over Heads:
Factory Rent
Factory Power
Indirect Material
Indirect Wages
Supervisor Salary
Drawing Office Salary
Factory Insurance
Factory Asset Depreciation
Works cost Incurred 50
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Particulars %
Cost of Sales (5) 90
Profit (balancing figure) 10
Sales 100
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Which type of costing method you follow?
Answer- The companies follow process costing.
Which are the variable cost, fixed cost and semi variablecost you incurred?
Answer- Variable cost- fuel, coal, furnish vil, LPG, power cost,
wages, Raw Material
Fixed cost- machinery, building, depreciationSemi variable cost- workers salary (overtime), telephone bill
Wages are paid on per hour basis or per unit basis or perday basis?
Answer- Wages are paid on per hour basis.
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There is any by product?
Answer- By products is hydrochloric acid (liquid), Dilute ChromicAcid (Green Acid)
Organic chloride (solid and liquid).
There is joint product?
Answer-There is no joint product.
How can you reduce your expense without compromisingquality or service?
Answer- No they are not compromising with quality.
What is your gross profit margin % to sales?
Answer-Gross profit margin is 30% of total sales.
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How you calculate cost per unit?
Answer- They calculates c.p.u on kilogram (kg) basis.
What is cost of saccharin per kilogram?
Answer- 1 kilogram saccharin is of Rs.500/-
You sale your product outside Maharashtra and India? If yesthen in which states and countries?
Answer- They sold goods in all over India, but major sale inNorth India, and in case of export they export infrequently.
How many workers you have in your factory?
Answer- The Company has total 25 workers
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How many skilled and unskilled?
Answer- Skilled 15, unskilled 10.
Which type of inventory techniques you follow?
Answer- They follow Eyeball system, the supervisor stands inthe middle of the store or manufacturing area and looks
around. If he noticed that some items are out of stock, theyreordered.
Do you control your cost?
Answer- The company follows budgetary control system. Asthe company following standard costing means budgetedcosting, it means the expenses are already estimated beforeincur.
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What are the Administration and selling expense?
Answer-The administration and selling expenses by companyare
-Electricity expenses- Asset Depreciation-General Charges-Audit Fees-Bank Charges-Other Office Expenses-Sales man salary-Traveling Expenses-Advertisement-Sales Tax
You produce the goods as per their capacity and you fullyutilized it or not?
Answer- yes, we produce goods at 100% capacity.
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