A project report on activity based costing as a measure of improving the cost structure

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A project report on activity based costing as a measure of improving the cost structure

  1. 1. “Activity Based Costing as a measure of improving the cost structure at Akash industries” INDEXSr.No. CONTENTS Page No.1 Executive summary 1-22 Industry Profile 3-53 Organization profile 6-84 History of Akash Industries 9-125 Company at a glance 13-186 Research Methodology 19-217 Data Collection 22-238 Conceptual Framework 24-3310 Analysis 34-5711 Findings 58-5912 Suggestions 60-6113 Conclusion 62-6314 Bibliography 64-65 Babasabpatilfreeppt.com 1
  2. 2. “Activity Based Costing as a measure of improving the cost structure at Akash industries” EXECUTIVE SUMMARY EXECUTIVE SUMMARYA study report on “ACTIVITY BASED COSTING AS A MEASURE OF IMPROVINGTHE COST STRUCTURE OF AKASH INDUSTRIES”, a project undertaken at AKASHINDUSTRIES BELGAUM. Babasabpatilfreeppt.com 2
  3. 3. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Activity-Based Costing (ABC) represents an alternative paradigm to traditional costaccounting system and it often provides more accurate cost information for decision makingsuch as product pricing, product mix, and make-or buy decisions. ABC models the causalrelationships between products and the resources used in their production and traces the costof products according to the activities through the use of appropriate cost drivers. In this project, the costing system followed by Akash Industries is comparedwith ABC in terms of the effects on the product costs that are carried out to highlight thedifference between two costing methodologies. By using this methodology, a valuableinsight into the factors that cause the cost is provided, helping to better manage the activitiesof the company. According to the study, Akash Industries follows traditional method for costingthat assigns overheads directly to the product. Cost of the product UC Range series 4 endcover is found out by Activity Based costing and is compared with the traditional methodfollowed by Akash Industries to arrive at the cost of the above product. The study states thatthe product is being over cost by the company. Akash Industries should go for Activity Based costing as it understands trueprofitability of the customers, products, or services and also helps in identifying areas wherethe cost can be reduced or efficiencies can be increased. Babasabpatilfreeppt.com 3
  4. 4. “Activity Based Costing as a measure of improving the cost structure at Akash industries” INDUSTRY PROFILE INDUSTRY PROFILE Manufacturing IndustryManufacturing industry refers to those industries which involve in the manufacturing andprocessing of items and indulge in either creation of new commodities or in value addition. Babasabpatilfreeppt.com 4
  5. 5. “Activity Based Costing as a measure of improving the cost structure at Akash industries”The manufacturing industry accounts for a significant share of the industrial sector indeveloped countries. The final products can either serve as a finished good for sale tocustomers or as intermediate goods used in the production process.Manufacturing industries are the chief wealth producing sectors of an economy. Theseindustries use various technologies and methods widely known as manufacturing processmanagement. Manufacturing industries are broadly categorized into engineering industries,construction industries, electronics industries, chemical industries, energy industries, textileindustries, food and beverage industries, metalworking industries, plastic industries, etc.Manufacturing industries are important for an economy as they employ a huge share of thelabor force and produce materials required by sectors of strategic importance such asnational infrastructure and defense. However, not all manufacturing industries are beneficialto the nation as some of them generate negative externalities with huge social costs. The costof letting such industries flourish may even exceed the benefits generated by them.India’s manufacturing base, which is the fourth-largest among emerging economies, isamong the fastest growing and has seen more investments as a proportion of gross domesticproduct than any country except China. Employment opportunities in the manufacturingindustry have declined comparatively. Manufacturing industry analysis also suggests that insome countries like China, technological know how has to be developed. Despite the factthat China is ranked fourth in the manufacturing productivity, due to technological lacunae,it is not being able to compete in the world market. Also needed are professionals wellversed in the technological know how.The Government has taken several initiatives to accelerate growth in this sector and improvecompetitiveness of Indian industry in general and manufacturing in particular.• Technology up gradation schemes for various sectors such as small scale industries,textiles, food processing etc.;• Industrial infrastructure up gradation programmes on cluster basis; Babasabpatilfreeppt.com 5
  6. 6. “Activity Based Costing as a measure of improving the cost structure at Akash industries”• Easier access to inputs at competitive prices and rationalization and reduction in dutyrates.• Encouragement to foreign technology collaborations and liberalization of FDI inmanufacturing activities. Babasabpatilfreeppt.com 6
  7. 7. “Activity Based Costing as a measure of improving the cost structure at Akash industries” ORGANIZATION PROFILE ORGANIZATIONAL PROFILEAkash Industries, a pioneer in the manufacture of sheet metal pressed components wasestablished in the year 1977. Ever since, it has grown into a big organization with a focus inquality in everything. Babasabpatilfreeppt.com 7
  8. 8. “Activity Based Costing as a measure of improving the cost structure at Akash industries” An ISO 9001-2000 Company with a good customer base in the domestic as well as theInternational market activities of Akash Industries include tool design also with a highlyskilled & professional work force, tools is designed for the components as per the customerrequirements. Their specialty being the deep drawn components, they cater the electrical,elevator, home appliances automobile industry and the defense. Akash Industries are in it for a long haul with a focus on continual improvement. Theyare having mechanical presses ranging from 10T to 80T capacity & hydraulic pressesranging from 10T to 250T capacity, out of which 50T, 80T, 160T & 250T hydraulic pressesare double acting presses to carry out deep drawing operations. They also use triple actingarrangement for some of these machines to carryout more precision items & to makemultiple operations at a time. Apart from this, shearing machine of capacity 3.0mm x 2500mm & 10mm x 2000mmboth hydraulically operated are installed for better cutting accuracy. The other relevantmachineries such as welding transformers, spot welding, grinding, and circle cuttingmachines are installed to support our manufacturing activity with maximum productivity.The two material handling equipments for loading & unloading of tools are in place to makesetting faster and easier. The separate tool maintenance area to carry out maintenance of toolis provided with surface grinding & drilling machines to attend immediate rectification, suchas sharpening of punches & dies. They are equipped with 62 KVA generators to overcomepower failure. The painting facility with 7 tank process of components before painting isavailable. The painting booth & drier for quick drying is also installed to give our customersa complete satisfaction by supplying ready for fitment components.Akash Industry have the pride to have clients from various industries many of them are well- known in the global industrial community. Some of our esteemed clients are as under:- • Cummins Generator Technologies • OTIS Elevator (I) Ltd. • Trident Power craft Pvt. Ltd. • Crompton Greaves Ltd Babasabpatilfreeppt.com 8
  9. 9. “Activity Based Costing as a measure of improving the cost structure at Akash industries”• Kaytee Switch Gears Ltd.• IFB India Babasabpatilfreeppt.com 9
  10. 10. “Activity Based Costing as a measure of improving the cost structure at Akash industries” HISTORY OF AKASH INDUSTRIES HISTORY OF AKASH INDUSTRIES Akash Industries M-15, Industrial Estate, Udyambag, Belgaum – 590 008 Babasabpatilfreeppt.com 10
  11. 11. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Mr. Sadanand T Macha completed his DIPLOMA IN TOOL AND DIE MAKING fromNETTUR TECHNICAL TRAINING FOUNDATION, DHARWAR (NTTF). Then heserved at Hyderabad Tool Pvt. Ltd, Hyderabad, as a highly skilled Mechanic for a period ofone and half years. Because of the climatic conditions he left Hyderabad and came back toBelgaum and joined M/s. Pusalkar Engineers, Belgaum. He started working under Mr. V BInamdar (Present Partner). It was here that he learnt i.e., from Purchases, Production,Inspection and Despatch, Etc for a period of one and half yeaRs. In M/s Pusalkar Engineershe came in contact with M/s Kirloskar Electric Co. Ltd. Bangalore & Hubli. Having gainedthe experience and he left M/s Pusalkar Engineers, Belgaum and was idle for 2 to 3 months.Meanwhile Shri V B Inamdar also left M/s Pusalkar Engineers and they both decided to starttheir own business.In the year 1977, they both started their own business in the name of M/s Akash Industries.They had neither place nor financial support. With a mere Rs. 3000/- they went on topurchase a wielding machine and started in their own garage at Angol ‘C’ scheme. Initially itwas only fabrication work that they used to carry out. But with this type of work it wasimpossible for both of them to meet their ends. By this time 6 months had passed. Theyreally had a tough time and a tougher time to Mr. Inamdar who was married and had 3childrens. Meanwhile, they felt that they should better join any service. Even to approachsomebody for work, they didn’t had the requisite finance. With the help of Mr. Inamdar’s,brother in law, who was working in West Coast Paper Mills Limited Dandeli, they could getan entry. Initially, they gave them maintenance jobs, which they used to get the things fromtheir fellow industrialists and supply the same. Months passed by and they felt that how theycan ever survive with this little earning. It was even difficult for them to go by bus and manya times they used to travel by truck to Dandeli, finish their work and again return back toBelgaum, by some means with hardly a few chips in their pockets. This continued for a yearand half. It was at this time that Shri A G Tembe, of M/s Ohm Electricals, gave them shelterin his shed at Industrial estate. Here they prolonged their business for 2 years supplyingmaintenance jobs. Doing fabrication work and even if necessary they used to carry thewielding machine to customers place and carry out the work.Their major problem was finance and how to expand their engineering activities was a bigquestion mark for them. But since they had no shed or own machinery they could notapproach the engineering companies. Babasabpatilfreeppt.com 11
  12. 12. “Activity Based Costing as a measure of improving the cost structure at Akash industries”However, in the year 1979, they got an Industrial Plot of 10 Guntas from KSSIDC LTD,through the help of Late Shri N A Hanamannavar, the then Chairman of the CityImprovement Board. They approached State Bank Of India for financial assistance and itwas at this juncture that they really helped them to construct their own shed and purchase ofmachinery. Their Working capital of Rs. 10,000 was also sanctioned. With the vastexperience of Mr. V B Inamdar, I.e of more than 15 years and his previous contacts. Theyapproached M/s KIRLOSKAR ELECTRIC COMPANY LIMITED. BANGALORE and M/sLARSEN & TOUBRO LTD. BANGALORE. Since, their line of activity was only SheetMetal Components, they could get a good amount of workload. They proved themselves byquality and delivery. More and more work started coming in and somehow they had to meettheir urgency with having only few machines. Having got confidence, they expanded theirown shed and added few more machines of a higher capacity. They approached M/sCROMPTON GREAVES LTD. AHMEDNAGAR, AUTOMOBILE CORPORATION OFGOA LTD. KIRLOSKAR ELECTRIC CO. HBL PEENYA & PUNE. In a span of two tothree years their business increased multifold. Capacity reached a saturated point and theywere not in position to meet their high demands and they had to add some higher capacity ofHydraulic Presses converting the same into double acting and triple acting. This increasedtheir supply position.In the year 1984, they started another partnership concern in the name of M/SKARNATAKA METAL PRESSING just near to their existing concern taking Mr. P ABagewadi and Mr. S K Yatgeri as additional partners. Here their basic activity was only tomanufacture Pole bricks of different capacities for alternators. At present their turnoverstands at Rs 45 Lakh per month.In the year 1988, they got an order from M/s AMMUNITION FACTORY, PUNE forsupplying of Aluminum Cartridge cases purely an import substitute. For this special purposemachines were acquired with the most accurate toolings and precious inspection equipmentsto meet their highest accuracy and quality. These cartridge cases are used to make Anti RiotRubber Bullets, which are used by the Police Department during Anti Riots. This was theirbiggest achievement that they had in their last 29 years. Babasabpatilfreeppt.com 12
  13. 13. “Activity Based Costing as a measure of improving the cost structure at Akash industries”AKASH INDUSTRIES major activities are manufacturing of Sheet Metal PressedComponents for Alternator, Motor, Automobile Parts and items required by customers totheir required specifications.In the words of Mr. S T Macha “This is all due to hard and sincere work and the backing ofour fellow industrialists who have supported us in all our difficult times”.“Our aim is to do sincere and hard work giving more attention to quality and delivery. Thisis what every one wants in this world of competition”. Babasabpatilfreeppt.com 13
  14. 14. “Activity Based Costing as a measure of improving the cost structure at Akash industries” COMPANY PROFILE COMPANY PROFILEName of the Organization : Akash IndustriesType of Industry : Manufacturing Industry.Address : Akash Industries M-15, Industrial Estate, Udyambag, Belgaum – 590 008 Babasabpatilfreeppt.com 14
  15. 15. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Partners : S.T Macha V.B Inamdar M.V Inamdar A.S MachaEstablished : 1977Size and nature of the company :SalesFY08-09 : Rs48,333,876.81Employees : 50QUALITY POLICY AT AKASH INDUSTRIES 1. To meet customers requirement and strive to exceed customer expectations. 2. Manage all activities and related resources as a process. 3. Create and maintain an environment in which personnel are fully involved in achieving organization objectives so as to ensure continual improvement and growth. 4. Take decisions and implement necessary actions based upon analysis of data and information. Babasabpatilfreeppt.com 15
  16. 16. “Activity Based Costing as a measure of improving the cost structure at Akash industries”5. Involve all our suppliers in quality improvement process as to ensure mutually beneficial and long time relationship. ORGANIZATION CHART Babasabpatilfreeppt.com 16
  17. 17. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Managing partner 1 Managing partner 2 In charge Shop Chief QA/QC Incharge Accountant Incharge Incharge Excise Sales Tax Cashier ManagementRepresentative Deputy ManagementRepresentative Plant Plant supervisor 2 Supervisor 1 In charge Workers stores PRODUCTS MANUFACTURED BY AKASH INDUSTRIES Babasabpatilfreeppt.com 17
  18. 18. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Components are manufactured as per the customer requirements. They are catering atpresent the industries like electrical, elevators & home appliances, specialization being deepdrawn components using C.R. & H.R. as the raw material, with thickness of material varyingfrom 1 mm CRCA to 8mm H.R. LIST OF CUSTOMERS Babasabpatilfreeppt.com 18
  19. 19. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Cummins Generator Technologies, India Motorsense, U.K Cummins Generator Technologies, Mexico Fasco Motors, USA ABB Ltd, Bangalore OITS Elevator company, India Trident Power craft Pvt.Ltd, Hubli Kirloskar Electric co. Hubli Mallik Engineering , Bangalore Telco Construction Equipment, Dharwad Babasabpatilfreeppt.com 19
  20. 20. “Activity Based Costing as a measure of improving the cost structure at Akash industries” RESEARCH METHODOLOGY RESEARCH METHODOLOGY Babasabpatilfreeppt.com 20
  21. 21. “Activity Based Costing as a measure of improving the cost structure at Akash industries”The Study:The present study is an attempt to understand and ascertain the costing method followed inAkash Industries and to compare it with the costing method Activity Based Costing.Objectives of the study: • To study the functions and operations of the organization • To know and understand the existing costing method followed by Akash Industries. • To identify activities involved in manufacturing of UC Range series 4 end cover. • To identify cost of the activities involved in manufacturing the product UC Range series 4 end cover. • To allocate the cost for the activities. • To find the cost per unit of the product UC Range series 4 end cover. • To compare existing costing method followed by Akash Industries with Activity Based Costing.Scope of the study:The scope of this study is to know and understanding the various processes and activitiesinvolved in manufacturing Industries especially in AKASH INDUSTRIES. It involvesfinding out the cost per unit of the product UC Range series 4 end cover by followingActivity based Costing.Need for the study:The theoretical aspects of ACTIVITY BASED COSTING provide the framework of thestudy. A conceptual and the practical approach is the need of the hour. Hence the field studybecomes as essential part of the curriculum. Thus this project study conducted to integratetheoretical and practical aspects of Activity based costing in the organization. DATA COLLECTION Babasabpatilfreeppt.com 21
  22. 22. “Activity Based Costing as a measure of improving the cost structure at Akash industries” • Primary Data Following are the sources of primary data collected.  Much of the information was collected from the cost accountant of Akash Industries (Mr.Sunil Kundap) .  Frequent discussions were made with other employees of the company.  Met few senior level executive of the firm. • Secondary Data  Secondary data was collected through last year’s balance sheet of Akash Industries.  Books on cost accounting were referred.  Company websiteLimitations of the study: • The study is limited to AKASH INDUSTRIES only. • In order to maintain confidentiality some information could not be disclosed by Akash Industries. Babasabpatilfreeppt.com 22
  23. 23. “Activity Based Costing as a measure of improving the cost structure at Akash industries”CONCEPTUAL FRAMEWORK ACTIVITY BASED COSTING Babasabpatilfreeppt.com 23
  24. 24. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Activity Based Costing (ABC) is an accounting technique that allows an organization todetermine the actual cost associated with each product and service produced by theorganization without regard to the organizational structure. It is developed to provide more-accurate ways of assigning the costs of indirect and support resources to activities, businessprocesses, products, services, and customers. ABC systems recognize that manyorganizational resources are required not for physical production of units of product but toprovide a broad array of support activities that enable a variety of products and services to beproduced for a diverse group of customers. The goal of ABC is not to allocate common coststo products. The goal is to measure and then price out all the resources used for activitiesthat support the production and delivery of products and services to customers.Concept of Activity-Based-Costing:An organization performs activities to do its business. These activities define the kind ofbusiness you are in: a ship owner has an activity to unpack boats; an accounting firmprepares tax returns; a manufacturer produces products; a council delivers services; auniversity teaches students. All activities consume resources. It is the consumption of theseresources that adds to overhead costs.The basis of Activity Based Costing is look at the activities required to produce the cost ofthe product or service. The activities consume resources and the cost of these can becalculated. The amount of activity required for each product and service is determined,hence the real cost can be determined.Whats what in ABC? • The activity is the work that is done. Babasabpatilfreeppt.com 24
  25. 25. “Activity Based Costing as a measure of improving the cost structure at Akash industries” • The resource is what the activity uses to do the work e.g. people, equipment, and services. Resources cost money. • The cost of the activity depends on the quantity of resources used to accomplish the activity. • The cost driver for an activity is the factor that influences the amount of the resources that will be consumed by this activity. Example: the activity is delivering goods. The costs of this activity include the truck drivers wages, fuel, depreciation of the truck, insurance, etc. The quantities of the resources that will be consumed by this activity are influenced by the number of deliveries made per year. Hence the cost driver could be the number of deliveries. A cost driver is designed to allocate the delivery activity cost pool to the cost objects. • The activity driver measures how much of the activity is used by the cost object. Example: Product A is delivered once a month, whereas product B is delivered once a week. Products A and B require a different number of deliveries, hence the cost of the delivery activity should be assigned to each product on the basis of the number of deliveries each uses. • The cost object is whatever it is you wish to cost. It could be a product, service, process, job or customer.While traditional costing arbitrarily allocates overhead costs, ABC traces overhead costs bylooking at the activities that each product and service calls upon. With ABC the productsconsume the activities. It is the activities that cost money.Why use Activity-Based-Costing? Babasabpatilfreeppt.com 25
  26. 26. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Activity-Based-Costing is necessary for the following reasons.  Understand true profitability of your customers, products, or services  Quantify the cost of non-value added activities such as errors and reworks  Identify opportunities to reduce costs and/or increase efficiency  Obtain actionable information to negotiate price increases for unprofitable clients  Stratify overhead costs so they can be managed more effectively.The ABC framework Babasabpatilfreeppt.com 26
  27. 27. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Activity based costing has been claimed as a method of arriving at more accurate costs, oftenin order to set selling prices. In a market economy, the idea of selling prices based on costs isdangerous, with serious consequences for a business competitive stance. With the variety ofconventions and concepts used in cost determination, there are no absolutes in determiningproduct costs, hence the objective of accurate costs is diluted. However, the technique ofABC is being seen more as a cost-distortion alarm; more as an attention directing tool; moreas a cost management tool.Activity Based Costing is a methodology for understanding the activities, processes, servicesand products of a business; understanding what drives the cost of these activities andprocesses; and thus reducing the non-value-adding activities/processes.The Elements of ABC can be described in the following model:The ABC CROSS:COSTASSIGNMENT VIEW RESOURCES RESOURCE DRIVERS COST ACTIVITIES PERFORMANCE DRIVERS MEASURES ACTIVITY OBJECTS DRIVERS OF WORK Babasabpatilfreeppt.com 27
  28. 28. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Resource Drivers are the link between resources and activities assigning cost form thefinancial statements.Activity Driver is the factor used to assign cost from an activity to a object of work, forinstance, if making a sales call is the activity then the frequency of sales calls to a specificcustomer/client would be the activity driver.Object of Work is the specific objective at the end of a process, for instance, a product, asatisfied customer/client.Cost Drivers are factors that cause changes in the performance of activities and createincreased consumption of resource. Fundamentally there are two types of Cost Drivers. TheStructural Cost Drivers are viz. Scale, Scope, Experience, Technology and Complexity. TheExceptional Cost Drivers are viz. Work Force Involvement, Total Quality Management,Capacity Utilization, Plant Layout, Electricity, Product Configuration and Exploiting ValueChain Linkages.Activities comprise of units or work or task. For example purchase of raw materials,activities involved in manufacturing etc. Babasabpatilfreeppt.com 28
  29. 29. “Activity Based Costing as a measure of improving the cost structure at Akash industries”ABC categorizes the activities into:Unit level activities:  Performed each time a unit is produced.  Consumed in direct proportion to the number of units produced.  E.g. Direct materials, Energy costs, direct labour, etc.Batch related activities:  Performed each time a batch of goods is produced.  Consumed in direct proportion the number of batches produced.  Fixed for all units within a batch.  E.g. set up resources, purchasing resources.Product sustaining activities:  Performed to support and sustain different products/services on the product life cycle.  Consumption varies with the variety of products/services and the stage of the Product Life Cycle the products/services are in.  E.g. designing the product.Facility sustaining activities:  Performed for supporting the happening of the above three types of activities and providing the platform/infrastructure.  These are generally fixed for a certain scale/scope of operations over a period of time.  E.g. Administration, plant maintenance, accounting, etc.  These costs are deducted lump sum from operating margins of all product lines. Babasabpatilfreeppt.com 29
  30. 30. “Activity Based Costing as a measure of improving the cost structure at Akash industries”ABC establishes inputs and outputs to and from each activity, Inputs to one activity may beoutputs from another and there could also be interactive relationships among activities.Hierarchy of Activities and Activity based profitability analysisSales RevenueLess: Unit-level products cost (Material, Power Costs, Other identifiable costs)= unit level contributionLess: Batch related costs (Sets-ups, material movements, purchase orders, inspection)= batch – level contributionLess: Product line costs (Process engineering, product specifications, order change notices)= product line contributionLess: Consumer and market related costs= customer level contributionLess: Facility sustaining cost (Plant management , rent , rates, and taxes, etc.,)= net profitNote: Unit level and batch contribution analysis facilitate short-term decision relating toproducts and complexity analysis. Product line contribution helps in product line decisions.Customer level contribution helps in customer and market related decisions. Facilitysustaining cost are period cost are period which are fixed in nature. Babasabpatilfreeppt.com 30
  31. 31. “Activity Based Costing as a measure of improving the cost structure at Akash industries” STAGES OR STEPS INVOLVED IN ACTIVITY BASED COSTING.Step 1: Identify the various activities within the organization. Activities comprise of units ofwork or task. For example purchase of material is an activity consisting of series of task likepurchase requisition, advertisement, inviting quotations, identification of suppliers, issuingpurchase orders, follow up etc.Step 2: Relate the overheads to the activity using resource cost drivers a) Over heads will be related to support and primary activities. b) For this purpose, resource cost drivers will be used. c) All costs will be identified under the activities, thus creating activity cost pools.Step 3: Apportion the cost to support activities over the primary activities on suitable basis. a) This is very much like reapportionment of service department expenses to production departments. b) Cost of support activities are spread over to primary activities to collect costs only under them. c) The base is the cost driver which is the measure of how the support activities are used.Step 4: Determine the activity cost drivers for activity/cost pools. a) Activity cost drivers used to relate the overheads collected in the cost pools to cost objects should be determined. b) This is based on the factor that drives the consumption of the activity. c) For example, in production scheduling, the driver will be the number of batches ordered. Babasabpatilfreeppt.com 31
  32. 32. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Step 5: Calculate Activity cost driver rate = Total cost of activity Activity cost driver a) Activity cost driver rates are computed for each activity. b) The rates will be multiplied by the different amounts of each activity that each product/other cost object consumes so as to ascertain its cost. c) This rate can be used to ascertain cost of the product (as in traditional absorption costing) and to ascertain cost of other cost objects such as customers/customer segments and distribution channels. Babasabpatilfreeppt.com 32
  33. 33. “Activity Based Costing as a measure of improving the cost structure at Akash industries”ACTIVITY BASED COSTING ADVANTAGES • More accurate costing of products/services, customers, distribution channels. • Better understanding overheads. • Easier to understand for everyone. • Utilizes unit cost rather than just total cost. • Integrates well with Six Sigma and other continuous improvement programs. • Makes visible waste and non-value added. • Enables costing of processes, supply chains, and value streams • Activity Based Costing mirrors way work is done • Facilitates benchmarking.ACTIVITY BASED COSTING DISADVANTAGES • More time consuming to collect data. • Cost of buying, implementing and maintaining activity based system. • Makes waste visible which some executives and managers dont want their boss to see. Babasabpatilfreeppt.com 33
  34. 34. “Activity Based Costing as a measure of improving the cost structure at Akash industries” How does Activity Based Costing differ from traditional cost accounting systems?Most traditional costing systems utilize a single basis, (e.g. direct labor) to distribute theindirect costs to all products and services. This method of allocating indirect costscommonly results in erroneous cost data. Often products which have high volume (and highlabor cost) are over costed. Likewise, the cost of lower volume products are oftenunderstated, and many of the indirect costs of these products are overlooked.Rather than relying on a single basis to distribute costs, ABC assigns costs to activities andproducts based on how the costs (resources) are actually consumed by the process orproduct. By moving away from traditional cost allocation methods and using improved ABCmethods of tracing and assignment, ABC provides managers with a clearer picture of cost ofprocesses and the profitability of customers and products. Babasabpatilfreeppt.com 34
  35. 35. “Activity Based Costing as a measure of improving the cost structure at Akash industries” ANALYSIS DETAILS OF THE PRODUCT Babasabpatilfreeppt.com 35
  36. 36. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Product name: UC Range series 4 end coverRaw Material Requirements for the product 1) Metal sheet of length 1250*2500*1.2mm 2) Weight of the sheet is 30kg 3) 21 Covers can be prepared from one metal sheet. 4) Sheets required to prepare 1000 units is 48sheets. 5) Cost of sheet metal per kg 37Rs. 6) Weight of a Cover = 30kg/21 =1.42kg 7) Gross Material cost per unit = 1.42 x Rs55 = Rs78.1/Cover 8) Process Generated Scrap =0.65 kgs 9) Scrap rate =Rs12/kg 10) Revenue generated from scrap = 0.65 x 10 = Rs 6.5 11) Net material cost = 78.1– 6.5 = Rs71.6 COSTING FOLLOWED BY THE COMPANY Product: UC Range series 4 end cover Number of units produced = 300000 Covers p.a Babasabpatilfreeppt.com 36
  37. 37. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Particulars Total Cost/unit cost(in Rs) (in Rs) Babasabpatilfreeppt.com 37
  38. 38. “Activity Based Costing as a measure of improving the cost structure at Akash industries”DIRECT COSTDirect Material (Raw Material Consumed) 3,05,73,918Direct Wages 18,93,573Direct Expenses 45,65,266Prime Cost 3,70,32,757 123.4FACTORY OVERHEADSfuel oil & lubricant 1,58,029Depreciation on machinery 8,04,853Repairs and maintenance 3,91,235Insurance 56,147Rates and Taxes 2,61,532Indirect material 14,73,273Factory cost 31,45,069 10.48ADMINISTRATIVE OVERHEADSPrinting and stationary 69,255Postage and telegram 18,929Newspapers and magazines 5,964Professional charges 27,619Office furniture 5,646Leave with wages 7,095Telephone expenses 1,75,338Salary to partners 14,60,000Vehicle maintenance 72,347Sundry expenses 84,809Salary to staff 2,59,203Cost Of Goods Sold 21,86,205 7.28SELLING AND DISTRIBUTIONAdvertisement expenses 3,410Traveling expenses 1,82,480Sales Promotion expenses 5,500Packing charges 4,97,360 6,88,750Cost Of Sales 4,30,52,78 143.50 1PROFIT 52,81,095 17.6SALES 4,83,33,87 161.1 6 CALCULATION OF COST PER UNIT BY ACTIVITY BASED COSTING 1) Purchase of Raw material Babasabpatilfreeppt.com 38
  39. 39. “Activity Based Costing as a measure of improving the cost structure at Akash industries” a) Raw material transport charges : Weight of the goods 5000kgs (for the specified component) of sheet metal Delivered from R.C Nagar Belgaum to Akash industries Belgaum = Rs.600.00Activity Sub Activity Cost DriverPurchase Raw material transport Weight of product Loading and unloading Weight of product Storage Weight of product Material cost Weight of product Therefore charges per unit = Rs600/5000kgs = Rs0.12/kg Cost of per cover =1.42kg x Rs0.12 =Rs0.1704/cover b) Loading and unloading Charges = Rs300.00/ton 5 Ton x Rs300 = Rs1500.00 Therefore charges for per unit = Rs1500/5000kgs = Rs0.20/kg Cost per cover =1.42 x Rs0.20 =Rs0.284/cover c) Storage charges = space required 10 x 5ft Rent 20000/month Building area = 10000sq ft Storage Cost =50sq ft x Rs2.00 =Rs100.00/- p.m Storage cost per day =Rs100/26Days Babasabpatilfreeppt.com 39
  40. 40. “Activity Based Costing as a measure of improving the cost structure at Akash industries” =Rs3.84/day Storage cost per Cover =Rs3.84/1000Covers =Rs0.00384/cover d) Material cost = 5000kgs x Rs 71.28 (exclusive of transport and loading and unloading charges) = Rs3,56,400 =5000kgs/1.42wt per kg =3521 Covers =Rs3,56,400/3521 Covers =Rs101.22 – scrap =Rs101.22– Rs6.5 =Rs94.72/coverTotal cost incurred for purchase of raw material Activity Sub Activity Cost Purchase Raw material transport Rs0.1704/cover Loading and unloading Rs0.284/cover Storage Rs0.00384/cover Material cost Rs 94.72/cover Total Rs95.172) Manufacturing cost Babasabpatilfreeppt.com 40
  41. 41. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Process labor Wages Hours Number Cost of Hp per Space Cost Activity Sub Activity Activity Driver per day of Machine machine man and Combination of occupie per sq Manufacturing Shearing Covers machine hour d by the ft Combination of man and Circleper 8 hrs cutting machineShearing 3 300/wor 8 1000 500000 machine hour 100 sq ft 5 Rs2 Combination of man and ker Deep drawing machine hour Circle 1 150 8 800 100000 0.5 50 sq ft Rs 2 Combination of man and Trimming cutting machine hour Combination of man and Deep 2 150 8 Piercing 800 800000 machine hour 100sq ft 7 Rs 2drawing &135 80sq ft Rs 2Trimming 1 150 8 500 300000 3Piercing 1 150 8 900 400000 3 50 sq ft Rs 2 COST OF EACH PROCESS 1) Shearing a) Man cover rate: = wages/number of Covers = Rs900/1000Covers = 0.9/Cover rate b) Machine cover rate =cost of machine x depreciation =Rs500000 x 10% depreciation =Rs50000 p.a =Rs50000/300days = Rs166.6per day Babasabpatilfreeppt.com 41
  42. 42. “Activity Based Costing as a measure of improving the cost structure at Akash industries” =Rs166.6/1000Covers =Rs0.17/Cover c) Space occupied by = 100 Sq ft x Rs 2 per sq ft the machine = Rs200 p.m = Rs200/26days =Rs7.69/day =Rs7.69/1000Covers =Rs 0.00769/Cover d) calculation of electricity Monthly electricity bill = 31,266 Monthly power consumption = 45hp Therefore, Rs31,266/45hp = Rs694.8 per hp/ month Power Consumption = 5hp For 5hp = Rs694.8 x 5hp = Rs3,474 Electricity bill per month = Rs3474.00 = Rs3474/26days =133.61/day =133.61/1000 =Rs0.1336/Cover Fuel oil & lubricants = Rs1,58,028 p.a = Rs 158028/ 300days = Rs 526.76/day = Rs 526.76/25machines =Rs21.07/machine Babasabpatilfreeppt.com 42
  43. 43. “Activity Based Costing as a measure of improving the cost structure at Akash industries” =21.07/1000Covers =0.021/CoverTotal Cost of shearing activity Activity Sub Activity Cost Shearing Man cover rate Rs0.9/cover Machine cover rate Rs0.17/cover Space occupied by the Rs0.00769/cover machine electricity Rs0.1336/cover Fuel oil & lubricants Rs0.021/cover Total Rs 1.232/cover 2. Circle cutting a) Man cover rate =wages/number of Covers = Rs150/800Covers =Rs0.1875/Cover b) Machine cover rate =Rs100000 x 10% depreciation =Rs10000 p.a =Rs 10000/300days =Rs33.33/per day =Rs33.33/800Covers =Rs0.0416/Cover c) Space occupied by = 50Sq ft x Rs 2 per sq ft the machine = Rs100 p.m Babasabpatilfreeppt.com 43
  44. 44. “Activity Based Costing as a measure of improving the cost structure at Akash industries” = Rs100/26days =Rs3.84/day =Rs3.84/800Covers =Rs 0.0048/Cover e) calculation of electricity Monthly electricity bill = Rs31,266 Monthly power consumption = 45hp Therefore, Rs31,266/45hp = Rs694.8 per hp/ month Power Consumption = 0.5hp For 0.5hp = Rs694.8 x 0.5hp = Rs347.4 Electricity bill per month = Rs347.4 = Rs347.4/26days =13.36/day =13.36/800Covers =Rs0.0167/Cover Fuel oil & lubricants = Rs1,58,028 p.a = Rs 158028/ 300days = Rs 526.76/day = Rs 526.76/25machines =Rs21.07/machine =21.07/800Covers =0.026/Cover Babasabpatilfreeppt.com 44
  45. 45. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Total Cost of circle cutting activity Activity Sub Activity Cost Circle cutting Man cover rate Rs0.1875/cover Machine cover rate Rs0.0416/cover Space occupied by the Rs0.0048/cover machine electricity Rs0.0167/cover Fuel oil & lubricants Rs0.026/cover Total Rs0.2766/cover3. Deep drawing a) Man hour rate =wages/number of Covers = Rs285/800Covers =Rs0.3562/Cover b) Machine hour rate =Cost of machine x Depreciation =Rs800000 x 10% depreciation =Rs80000 p.a = Rs80000/300days =Rs266.67/per day =Rs266.67/800Covers =Rs0.333/Cover c) Space occupied by = 100Sq ft x Rs 2 per sq ft the machine = Rs200 p.m = Rs200/26days =Rs7.69/day =Rs7.69/800Covers Babasabpatilfreeppt.com 45
  46. 46. “Activity Based Costing as a measure of improving the cost structure at Akash industries” =Rs0.0096/Cover d) calculation of electricity Monthly electricity bill = Rs31,266 Monthly power consumption = 45hp Therefore, Rs31,266/45hp = Rs694.8 per hp/ month Power Consumption = 7hp For 7hp = Rs694.8 x 7hp = Rs4863.6 Electricity bill per month = Rs4863.6 = Rs4863.6/26days =187.06/day =187.06/800Covers =Rs0.233/Cover Fuel oil & lubricants = Rs1,58,028 p.a = Rs 158028/ 300days = Rs 526.76/day = Rs 526.76/25machines =Rs21.07/machine =21.07/800Covers =0.026/CoverTotal Cost of deep drawing activity Activity Sub Activity Cost Deep Drawing Man cover rate Rs0.3562/cover Babasabpatilfreeppt.com 46
  47. 47. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Machine cover rate Rs0.333/cover Space occupied by the Rs0.0096/cover machine electricity Rs0.233/cover Fuel oil & lubricants Rs0.026/cover Total Rs 0.9578/cover4. Trimming a) Man hour rate =Wages/number of Covers = Rs150/500Covers =Rs0.3/Cover b) Machine hour rate =Cost of machine x depreciation =Rs300000 x 10% depreciation =Rs30000 p.a = Rs30000/300days =Rs100/per day =Rs100/500Covers =Rs0.2/Cover c) Space occupied by = 80Sq ft x Rs 2 per sq ft the machine = Rs160 p.m = Rs160/26days =Rs6.15/day =Rs6.15/500Covers =Rs 0.012/Cover d) calculation of electricity Babasabpatilfreeppt.com 47
  48. 48. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Monthly electricity bill = Rs31,266 Monthly power consumption = 45hp Therefore, Rs31,266/45hp = Rs694.8 per hp/ month Power Consumption = 3hp For 3hp = Rs694.8 x 3hp = Rs2084.4 Electricity bill per month = Rs2084.4 = Rs2084.4/26days =80.16/day =80.16/500Covers =Rs0.16/Cover Fuel oil & lubricants = Rs1,58,028 p.a = Rs 158028/ 300days = Rs 526.76/day = Rs 526.76/25machines =Rs21.07/machine =21.07/500Covers =0.042/CoverTotal Cost of trimming activity Activity Sub Activity Cost Trimming Man cover rate Rs0.3/cover Machine cover rate Rs0.125/cover Space occupied by the Rs0.012/cover machine electricity Rs0.16/cover Babasabpatilfreeppt.com 48
  49. 49. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Fuel oil & lubricants Rs0.042/cover Total Rs 0.639/cover5. Piercing a) Man hour rate =Rs 150/900Covers =0.166/Cover b) Machine hour rate =400000 x 10% depreciation =40000 p.a = 40000/300days =133.33/per day =133.33/900Covers =0.148/Cover c) Space occupied by = 50Sq ft x Rs 2 per sq ft the machine = Rs100 p.m = Rs100/26days =Rs3.84/day =Rs3.84/900Covers =Rs 0.0042/Cover d) calculation of electricity Monthly electricity bill = Rs31,266 Monthly power consumption = 45hp Therefore, Babasabpatilfreeppt.com 49
  50. 50. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Rs31,266/45hp = Rs694.8 per hp/ month Power Consumption = 3hp For 3hp = Rs694.8 x 3hp = Rs2084.4 Electricity bill per month = Rs2084.4 = Rs2084.4/26days =80.16/day =80.16/900Covers =Rs0.089/Cover Fuel oil & lubricants = Rs1,58,028 p.a = Rs 158028/ 300days = Rs 526.76/day = Rs 526.76/25machines =Rs21.07/machine =21.07/900Covers =0.023/CoverTotal Cost of piercing activity Activity Sub Activity Cost Piercing Man cover rate Rs0.166/cover Machine cover rate Rs0.148/cover Space occupied by the Rs0.042/cover machine electricity Rs0.089/cover Fuel oil & lubricants Rs0.023/cover Total Rs0.468/cover Babasabpatilfreeppt.com 50
  51. 51. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Activity Sub Activity Cost Manufacturing Shearing Rs1.232/cover Circle cutting Rs0.2766/cover Deep drawing Rs 0.9578/cover Trimming Rs 0.639/cover Piercing Rs0.468/cover Total Rs3.5734/coverTotal Cost of the processes Babasabpatilfreeppt.com 51
  52. 52. “Activity Based Costing as a measure of improving the cost structure at Akash industries”3) InspectionInspection rate 10% of number of units produced per day1000Covers x 10% = 100Covers to be inspected 1) Salary of the inspector = Rs8000/month Time required to inspect = 1 hour Per day salary = Rs8000/26days =Rs307.69/day Per hour salary =Rs 307.69/8hRs = Rs 38.46/hr Wages to the inspector = 1hr x Rs38.46 = Rs38.46/hr 2) Cost of instruments required to inspect = Rs 8500 Expected life of instrument is one year Instruments charges per month = Rs8500/12months = Rs708.33/month Per day charges = Rs708.33/26 days = Rs 27.24/day Per hour charges = Rs27.24/8hrs = Rs3.4/hr Babasabpatilfreeppt.com 52
  53. 53. “Activity Based Costing as a measure of improving the cost structure at Akash industries” 3) Calibration charges per year = Rs900 Per month charges = Rs900/12months = Rs75/month Per day charges = Rs75/26days = Rs3/day Per hour charges = Rs3/8hr =Rs0.375/hr Total of inspection activity Activity Sub Activity Cost Inspection Salary of the inspector Rs38.46/hr instruments required to Rs3.4/hr inspect Calibration Rs0.375/hr Total Rs42.23/hr Cost of Per Cover Rs 0.0422/cover4) Painting. Babasabpatilfreeppt.com 53
  54. 54. “Activity Based Costing as a measure of improving the cost structure at Akash industries” 1) Cost of paint and thinner Paint Rs250/ltr Thinner Rs150/ltr Divided in the ratio of 75:25 Cost of Paint = Rs250 x 75/100 =Rs 187.5 Cost of Thinner = Rs150 x 25/100 =Rs 37.5 Cost of mixture total = Rs187.5 + Rs37.5 = Rs225 Total Area of component covered by the mixture is 45 sq ft Area of the a component = 1.72 sq ft Covers that can be painted = 45sq ft/1.72sq ft = 26Covers Cost of paint per cover =Rs225/ 26Covers = Rs8.6/Cover 2) Labour cost People required for painting =2 Wages per day = Rs 320 Covers painted in one day = 200 Covers Cost per cover = Rs320/200covers =Rs1.6/cover 3) Paint booth operation cost = Rs300000 Deprecation = 20% of the cost Babasabpatilfreeppt.com 54
  55. 55. “Activity Based Costing as a measure of improving the cost structure at Akash industries” =Rs 300000 x 20% = Rs60000p.a Per month = Rs60000/12months =Rs5000p.m Per day = Rs5000/26days = Rs192.3/day Cost of per covers =Rs 192.3/200Covers =Rs0.961/Cover 4) Power charges Rs 5500/month Total Power consumption =20hp Therefore, Rs5500/20hp =Rs275per hp/month Power consumption =5hp For 5hp =5hp x Rs275 Electricity bill per month for 5hp =Rs1375 Per day charges = Rs1375/26days = Rs53/day Per cover charges =Rs53/200Covers =Rs0.265/Cover 5) Area of painting booth = 60 x 20ft Rent = 20000 p.m Built area = 10000sq ft Babasabpatilfreeppt.com 55
  56. 56. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Rent per sq ft = Rs30000/10000sq ft = Rs3/sq ft/month Cost of area = 1200sq ft x Rs3 = Rs 3600 Per day charges =Rs3600/26 = Rs138.46/day Per cover =Rs138.46/200Covers = Rs0.692/Cover Area of the Cover = 1.72sq ft Cost of per cover = Rs12.11 x 1.72sq ft = Rs20.82/coverTotal cost of painting activity Activity Sub Activity Cost Painting Cost of paint and thinner Rs8.6 Labour cost Rs1.6 Paint booth operation cost Rs0.961 Power charges Rs0.265 Area of painting booth Rs0.692 Total Rs12.11/sq ft Cost of Per Cover Rs20.82/cover5) Dispatching 1) Packing charges : Packing material required: --- Cost of wooden box = Rs 3000 (inclusive transportation cost, taxes) Cost of plastic wire = Re 1.50/Cover Cost of paper = Re1.00/Cover Babasabpatilfreeppt.com 56
  57. 57. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Number of Covers packed per box = 200 covers Rs3000 + (Re1.50 x 200) + (Re1.00 x 200) = Rs3500 2) labour People required = 3 5 boxes packed per day Wages = Rs200 + Rs150 + Rs150 = Rs500/day Wages per box = Rs500/5boxes = Rs100/box Total =Rs 3500 + Rs100 = Rs 3600 Per Cover = Rs3600/200Cover =Rs18/CoverTotal of dispatching Activity Activity Sub Activity Cost Despatching Packing charges Rs3500 labour Rs100 Total Rs3600/box Rs18/Cover Cost Per Cover COST PER UNIT OF THE PRODUCT Babasabpatilfreeppt.com 57
  58. 58. “Activity Based Costing as a measure of improving the cost structure at Akash industries” Amount COST/COVER ACTIVITIES in Rs Amt in Rs1 PURCHASE OF RAW MATERIALS 95.0172 MANUFACTURING Shearing 1.232 Circle cutting 0.2766 Deep drawing 0.9578 Trimming 0.639 Piercing 0.468 Total 3.57343 INSPECTION 0.04224 PAINTING 19.905 DESPATCHING 18.00 GRAND TOTAL 136.68 Babasabpatilfreeppt.com 58
  59. 59. “Activity Based Costing as a measure of improving the cost structure at Akash industries” FINDINGS FINDINGS1. Akash Industries are specialized in deep drawn components that cater the electrical, elevator, home appliances automobile industry and the defense.2. Akash Industries follows traditional method of costing.3. The product UC Range series 4 end cover is over costed. Babasabpatilfreeppt.com 59
  60. 60. “Activity Based Costing as a measure of improving the cost structure at Akash industries”4. According to traditional costing the cost of the cover is Rs.143.505. According to Activity Based costing the cost of the cover is Rs136.686. According to costing followed by Akash Industries they first identify the cost then they go for producing the product rather than identifying the activities first.7. Appropriate variable overheads are identified to individual products through ABC.8. All levels of activities in the manufacturing cost hierarchy viz unit level, batch level, product level and facility level have been identified.9. Cost drivers for the activities have been identified.10. Akash Industries relates overheads to cost centers which are not realistic to the behavior of costs.11. To get a realistic analysis of cost behavior, the overheads have been properly related to cost drivers. Babasabpatilfreeppt.com 60
  61. 61. “Activity Based Costing as a measure of improving the cost structure at Akash industries” SUGGESTIONS SUGGESTIONS1. Akash Industries should adopt Activity Based costing in their organization.2. As ABC integrates well with Six Sigma and continuous improvement programs the company can achieve minimum rejection rate.3. To arrive at the actual cost of the product, overheads should not be directly assigned to the cost center which is basically done in traditional costing.4. Instead of focusing more on cost reduction they should focus more on cost control. Babasabpatilfreeppt.com 61
  62. 62. “Activity Based Costing as a measure of improving the cost structure at Akash industries”5. Akash Industries can adopt cost control strategy where in the company can begin by evaluating non-labor expenses which can be controlled.6. Labor and employment costs are a source of considerable expense and should be constantly monitored.7. If it is possible to amalgamate two jobs into one, make some jobs part time, use temporary contract labor, outsourcing to specialists, consider if some other choice of labor cost saving is available.8. Akash Industries should follow an open style with clear and concise objective for the successful implementation of ABC.9. Organization-wide awareness should be extended to convince the participants to change, as well as effecting the change.10. Overheads are part of running a business but can be controlled. Everything from cleaning materials to the cost of vehicle operation , machine maintenance, consumable materials and staff employment costs can, and must be kept as low as possible. Babasabpatilfreeppt.com 62
  63. 63. “Activity Based Costing as a measure of improving the cost structure at Akash industries” CONCLUSION CONCLUSIONABC utilizes the activity concept and by using the activities, ABC can successfully link theproduct costs to production knowledge. How a product is produced, how much time isneeded to perform an activity and finally how much money is absorbed by performing thistask are answered by the help of ABC studies. This method is a dynamic tool for continuousimprovement. With ABC to its benefit, any enterprise will have a built in competitive costadvantage and can continuously add value to both its stakeholders and customers. Babasabpatilfreeppt.com 63
  64. 64. “Activity Based Costing as a measure of improving the cost structure at Akash industries”Therefore, Activity-Based Costing measures the costs and profits of an organization basedon the activities performed within that organization. By focusing on processes that contributeto revenues and business operations, ABC can accurately determine how each process relatesback to specific products, customers, or services. This can make a big difference afterconsidering warehouse, sales, customer service, administration and other costs that are oftenapplied at a standard rate, if at all. With ABC you can drill into profitability and performanceby almost any factor you can think of. BIBLOGRAPHY Babasabpatilfreeppt.com 64
  65. 65. “Activity Based Costing as a measure of improving the cost structure at Akash industries” BIBLOGRAPHY  Books : 1) COST ACCOUNTING for BUSINESS MANAGERS by Asish K Bhatacharyya. 2) COST ACCOUNTING by I M Pandey  Websites : babasabpatilfreeppt.com Babasabpatilfreeppt.com 65

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