this is a case study about Analysis of cost sheet and pricing structure of Metalco (Pvt) Ltd.

1. Management
Accounting
Group Assignment
Analysis of cost sheet and pricing structure of selected manufacturing company

2. Every business firm should preparer cost sheet.
Manufacturing is process of producing goods by Laboure or by
machinery.
Textile manufacturing companies, furniture companies,
fertilizer manufacturing companies are some example for
manufacturing possesses.
Manufacturing

3. • Metalco Pvt Ltd Located in Boralasgamuwa.
• Established in 1984 by Mr. Karunarathna
• Current director Mr. Saman Karunarathna
• It is a small scale company
• Metelco company producing
• Prefect badges
• School badges
• Car badges
Introduction on
Company

4. Literature
Reviews

5. Review 01
“Cost estimation in product development academic research and e-
commercial system evolution”
Authors :
• Linda B Newness,
• Wai M. Cheung ,
• Anthony R. Mileham,
• Robert Marsh and
• John D. Lanham
This research also organized in to two section
1. A review of cost estimation research
2. evaluation cost estimation research
Application of costing techniques and method are depend on products and
industries

6. “Development of an effective cost management method for
Malaysian SMEs”
Authors : Deros B.M, Rahman N, Zainal N.H, Rahaman M.N.A,
Ismail A.R
Research is about,
• Many of SMEs in Malaysian have made mistakes in their cost
management process
• The two of these major mistakes are due to
1. Lack of knowledge in cost management
2. Lack of appropriate technologies to make monitor all
production cost
Review 02

7. • This research have two main objectives
• To present a case study of the cost management system of a
local SMEs scale business.
• To point out their flaws and weaknesses in its cost
management system and author will present an effective cost
management system by a Japanese multinational.
Research out come
Based on finding of both case studies, the author able to prepare
an effective cost management method for them.
Review 02

8. “A study on cost accounting system and pricing policy of printing companies
in Ethiopia”
Authors :
D. Lalithia Rani and Fitsam Kidane (from university of Visakhapatnam India)
Research is about :
Costing and pricing system of large size and medium printing companies.
Because of the products are heterogenous and based on costumers
specification, they use customer order costing method
Research outcome,
Regarding the pricing policy of printing companies, the research results
shows companies should use cost-plus pricing method
Review 03

9. Cost Sheet
Metelco (Pvt)
Ltd
Cost sheet is a statement which shows the various componerod the
total cost of a product.

12. Pricing Method
Pricing determine what price should a product or service
exchanging in a market.

13. • The company use cost-plus pricing method to calculate
selling price.
• The company add 10% to cost in order to fix the selling
price.
• The cost of unit = Rs. 202 (Rs.4,854,586/Rs.24,000).
• Selling price = 202 + 202 * 0.1 = Rs 222.2.
• Profit = Rs. 20.2 (Profit = selling price – cost price).
Pricing Method – Metalco (Pvt) Ltd
Selling price = cost of production + cost of production ∗ markup percentage

14. Nickel painting
Step 03
Clipping and
Soldering
Step 04
Printing and
embossing
Step 02
Polishing and
Packing
Step
05
Design and art
work
Step 01
The Process

16. • Should maintain stock
• Should maintain accounting statement – cost sheet
• Allocated budget for advertising Metlco company can increase their profit
Recommendation

17. Conclusion
• Main objectives in to analysis cost sheet and pricing structure to a
selected manufacturing company.
• There are number of importance of preparing cost sheet and pricing
structure methods to a company.
• Metalco Pvt Ltd is the selected manufacturing company.

18. Any Questions