Costing Ppt ( Presentation)

8/19/2019 Costing Ppt ( Presentation)

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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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Costing Ppt ( Presentation)

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