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Fauji cement ltd

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Transcript

  • 1. COST CLASSIFICATION OF BY: THAWBAN ANWAR BAIG
  • 2. PRODUCTION PROCESS
    • FAUJI CEMENT IS MANUFACTURED FROM BEST QUALITY RAW MATERIALS USING DRY PROCESS
    • MAJOR INGREDIENTS
      • LIMESTONE
      • CLAY
  • 3. PRODUCTION PROCESS
    • FIRST RAW MATERIALS ARE QUARRIED, CRUSHED AND CORRECTED
    • AFTER WHICH THEY ARE MIXED IN THE CORRECT PROPORTIONS TO FORM THE BEST RAW MIX
    • THE RAW MIX IS THEN GROUND IN A RAW MILL
  • 4. PRODUCTION PROCESS
    • SUBSEQUENTLY BURNT IN A ROTARY KILN AT A TEMPERATURE AROUND 1450 °C
    • THE RAW MATERIALS UNDER GO A NUMBER OF COMPLEX CHEMICAL REACTIONS IN THE BURNING PHASE AND LEAVE THE KILN AS CEMENT CLINKER, CONSISTING OF AGGLOMERATE OF CLINKER MINERALS
  • 5. PRODUCTION PROCESS
    • FINALLY THE CLINKER IS GROUND TO A FINE POWDER CALLED CEMENT, IN A CEMENT MILL TOGETHER WITH 4-6% GYPSUM
    • THE GYPSUM SERVES TO RETARD THE SETTING TIME OF THE CEMENT, WHICH WOULD OTHERWISE HARDEN, IMMEDIATELY WITH THE ADDITION OF WATER
  • 6.  
  • 7.  
  • 8. MANUFACTURING COST
    • DIRECT MATERIAL
      • LIME STONE
      • CLAY
      • LATERITE
      • GYPSUM
    • DIRECT LABOR
      • SKILLED LABOR
      • CONTRACT LABOR
    SALARIES
  • 9. MANUFACTURING COST
    • DIRECT DEPARTMENTAL COSTS
      • EMPLOYEES OTHER BENEFITS
      • REPAIR AND MAINTENANCE
      • STORES AND SPARES
      • LINING PLATE
      • GRINDING MEDIA COSTS
      • INSURANCE
  • 10. COST BEHAVIOR
    • VARIABLE COSTS (DIRECT)
      • PURCHASE OF RAW AND PACKING MATERIAL
      • FUEL AND POWER COST
      • STORE AND SPARES (INCLUDING REPAIR AND MAINTENANCE)
      • PURCHASED EQUIPMENT COST
      • PURCHASES EQUIPMENT INSTALLED
      • INSTRUMENTATION INSTALLED
      • CONVEYER BELT INSTALLED
      • ELECTRICAL INSTALLED
      • BUILDING (INCLUDING SERVICES)
      • LAND
      • YARD IMPROVEMENT
      • SERVICES FACILITIES
  • 11. COST BEHAVIOR
    • VARIABLE COSTS (INDIRECT)
      • ENGINEERING AND SUPERVISION
      • CONSTRUCTION EXPENSE
      • LEGAL EXPENSE
      • CONTRACTOR FEE
    • FIXED COSTS
      • SALARIES AND WAGES
      • DEPRECIATION
      • SELLING AND ADMINISTRATIVE EXPENSE
      • FINANCIAL EXPENSE
      • MISCELLANEOUS EXPENSE
  • 12. MANUFACTURING OVERHEAD
    • FACTORY
    • ADMINISTRATION
    • FINANCIAL
  • 13. MANUFACTURING OVERHEAD
    • Factory Overhead
      • Repair and maintenance
      • Insurance
      • Furnace oil/diesel/coal/Rdf
      • Stores and spares consumed
      • Power/gas
      • Depreciation
      • Technical fee and assistance
  • 14. MANUFACTURING OVERHEAD
    • Administration overhead
      • Rent, rates and taxes
      • Travelling and entertainment
      • Legal and professional
      • Printing and stationary
      • Employees insurance
      • Communication and establishment
      • Donation
      • Administration vehicles Expense
  • 15. MANUFACTURING OVERHEAD
    • Financial Overhead
      • Fee and charges on loans
      • Interest/markup on long term finances
      • Bank charges and commission
      • Markup on short term borrowings
      • Markup on WPPF
      • Guarantee commission
  • 16. BASIS OF ALLOCATION OF OVERHEADS TO DEPARTMENTS
    • Departments RATIOS
    • Crusher 7%
    • Stockhall staker 3%
    • Raw mill 17%
    • Kiln 40%
    • Cement mill 20%
    • Packing plant 10%
    • Compressed air 2%
    • Power plant 1%
  • 17. BASIS OF ALLOCATION OF OVERHEADS ON COMMON ASSETS
    • Departments RATIOS
    • Crusher 7%
    • Stockhall staker 7%
    • Raw mill 17%
    • Kiln 39%
    • Cement mill 19%
    • Packing plant 5%
    • Compressed air 3%
    • Power plant 3%
  • 18. PRIME COST
    • DIRECT MATERIAL DIRECT LABOR
      • LIME STONE
      • CLAY
      • LATERITE
      • GYPSUM
      • SKILLED LABOR
      • CONTRACT LABOR
  • 19. CONVERSION COST
    • DIRECT LABOR MANUFACTURING OVERHEAD
      • SKILLED LABOR
      • CONTRACT LABOR
    FACTORY ADMINISTRATION FINANCIAL
  • 20. SUNK COST
    • COMPANY BUILT A NEW PLANT IN JHANG BAHTAR AND THIS IS SUNK COST FOR THE COMPANY
    • THE WORK IN PROCESS MATERIALS OR INVENTORY IS ALSO THE SUNK COST FOR THE FAUJI CEMENT
  • 21. OPPORTUNITY COST
    • THE CONSTRUCTION OF NEW PLANT IN JHANG BAHTAR IS OPPORTUNITY COST FOR THE COMPANY
    • ON THE OTHER HAND COMPANY COULD HAVE BOUGHT MARKETABLE SECURITIES, RAW MATERIALS OR ANY OTHER THING
  • 22.
    • THANK YOU!