exemplifying direct/indirect costs

1. MANAGEMENT ACCOUNTING – REAL ESTATE INDUSTRY
MA GA – 1 ASSIGNMENT
Academic Group B-6
1. Ashutosh Singhal (PGPM-22-089)
2. Jai Rathi (PGPM-22-107)
3. Priyatosh Mitra (PGPM-22-122)
4. Shikha Chauhan (PGMPW-23-17)

2. INTRODUCTION
Total Revenue
Total Expense
Products & Services
Comparison
Parameter
Residential Properties
Commercial Properties
Integrated Townships
Redevelopment Projects
Real Estate Consultancy
Residential Properties
Commercial Properties
Sustainable
Integrated Cities
Residential Properties
Commercial Properties
Retail Properties
Hospitality Services
Facility Management
Property Management
2,69,397 lacs
1,63,844 lacs
37,760 lacs
44,947 lacs
25,280 lacs
38,811 lacs

3. COMPANY COST
STRUCTURE
COST
BEHAVIOUR
Oberoi
Realty
Kolte Patil Mahindra
Lifespace
100% 100% 100%
33% 33% 33%
67% 67% 67%
Total Expense Direct Indirect
Oberoi Realty
Mahindra Lifespace
Total
Expense
Fixed Variable Semi
Variable
100%
39%
33%
28%
100%
41%
30% 30%
100%
38% 38% 25%

4. COST OBJECTS
BOTTOM-UP APPROACH
INDIVIDUAL PROPERTY
HUMAN RESOURCE COSTS
MARKETING & ADVERTISING
UTILITIES
LEGAL AND ACCOUNTING
TOP-DOWN APPROACH
LOCATION
PROJECT CATEGORIES

5. COSTING METHOD
ABC
Costing
for mapping
expenses to
activity level
Activity Pools
Land Development
Property Acqisition
Property Maintenance
Contract Cost
Hiring Legal Professionals
Safety Auditing
Brokerage
Activity Level Mapping
Number of Acres of Land
Number of Properties Acquired
Number of Requests Received
Number of Contracts Negotiated
Total Number of hours billed by legal
professionals
Number of Safety Violations
Number of properties sold or leased

6. COST DRIVERS AFFECTING VALUE CHAIN
 Higher Raw Material Costs
 Shortage of cheap labor
 Unavailability of lands in urban areas & suburbs
 Changes in Political Influence
 Advancing technologies and new ESG norms
 Volatile Brokerages

7. THANK YOU