A field project on a production unit in our university.

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A Project On Cost
Analysis of SkyyRider-
Electric(Production Unit)
This is to be presented by:-
Sourabh Mazumdar(200409120001)
Gopal Krushna Kar(200409120051)
Ansuman Patra(200409120059)
Ayushman Ritik(200409120054)
Anurab Kumar Sahu(200409120048)

2. INTRODUCTION
How SkyyRider Electric is trying to bring an electric revolution in Bhubaneswar?
Petrol prices are at an all time high @ ₹111/- as of November 2021
Travelling costs have increased considerably in petrol/diesel based public transport
Although slower than petrol alternatives but capable for a greener future

3. What is management accounting?
Deals with the accounting of a specific or individual company
It is the process of:-
Preparation of final accounts & cash flow statements for specific events
Analyzing and interpreting the company’s financial results

4. The Break-Up Of Materials of
SkyyRider Electric

5. Presenting the cost sheet for SkyyRider
Electric:-
STATEMENT OF COST AND PROFIT:- Price(in ₹)
Direct materials ₹ 1770
Direct wages ₹ 16000
Direct expenses ₹45000
Prime Cost- ₹93,270
Add: Factory O.H.
Wages of Foreman ₹ 3000
Storekeeper’s Wages ₹ 4000
Oil &Water ₹ 4000
Factory Rent ₹ 7000
Repairs &renewals of factory palnt ₹ 6000
Factory Lighting ₹ 2600
Depreciation Of Factory plant ₹ 4000
Consumable Stores ₹ 3000
Factory Cost ₹ 33,600
STATEMENT OF COST AND PROFIT:-
Price(in ₹)
Prime Cost- ₹62,770

6. Add:Admnistration OH
Office rent ₹ 7000
Repairs &renewals of office expenses ₹ 2800
Office lighting ₹ 6000
Depreciation of office premises ₹ 5050
Manager’s Salary ₹ 8500
Director’s Fees ₹ 15000
Office Stationery ₹ 3500
Telephone Charges ₹ 2500
Postage ₹ 2000
Cost Of Production ₹ 52,350
Add:Selling and Distribution OH
Carriage Outward ₹ 7700
Sales Man Salaries ₹ 3500
Travelling Expenses ₹ 8000

7. Advertising ₹ 9440
Showroom Charges ₹ 7700
Cost of Sales ₹ 6000
Profit ₹35000
Total Sales Price ₹2,26,060
Therefore SkyyRider Electric should initially sell @ ₹2,26,060 per
unit to earn a profit percentage of ~16% on the total cost.

8. What is break even analysis?
• Breakeven is the point at which total revenue equals
total costs. Breakeven analysis helps businesses make
decisions about prices, costs and the level of sales.
• Turnover or sales revenue is the money a business
receives from selling its goods.
• Total revenue = Price per product x Quantity sold
• If I charged Rs 20 for each product and sold ten then my
total revenue would be Rs200.

9. • It helps assess the impact of price changes.
• It helps assess changes in costs.
• It is a useful planning tool.
• It is an essential part of any business plan.

10. •Breakeven is only a forecast. It can change if:
• the price of raw materials changes
• the number of competitors changes
• the current market is volatile and breakeven becomes
less predictable

11. • Total Fixed Cost= Rs 22,000
• Total Variable Cost= Rs 2,25,760
• Total Selling price= Rs 2,26,060

12. Break even point= Fixed cost/Selling price –
Variable cost
=22,000/(Rs 2,26,060-Rs
2,25,760)
=73.33
Therefore the break-even point for SkyyRider Electric is 73 units.

13. What is marginal cost
• The marginal cost is the change in the total cost that
arises when the quantity produced is incremented, the
cost of producing additional quantity.
• Marginal cost is different from average cost, which is the
total cost divided by the number of units produced.

14. Why is it important?
• Marginal cost (MC) is the cost of the last unit produced in a
manufacturing process, the last service performed, or the last unit
consumed.
• It is an economic term that takes into account decreasing or
increasing costs of producing or consuming extra goods and
services.
• Marginal cost is often related to marginal revenue, marginal benefit,
and average and total cost.

15. 1 pc 900W motor
Item
Specific
ation
Quantit
y
Unit
price
(₹)
GST%
Total
Amoun
t
(₹)
Total
Amoun
t(Inc
GST)
(₹)
Total
amount
after
(budget
control
)
(₹)
Total
amount
after
budget
control
(Inc
GST)
(₹)
Saving
(₹)
1piece
of 900W
motor
900W
BLDC
1 3,100 28% 3,100 3,968 2,600 3,328 1,368
•Total amount of the motor is 3,100; including a 28% of GST the amount will be 3,968.
•Now if we use a cheaper model motor which will cost ₹500 less, the cost of 1 motor
will be ₹ 2,600. Adding 28% of GST on it we will get the amount of ₹3,328.
•Hence we will be saving 1,368rs

16. Battery box
Item
Specifi
cation
Quanti
ty
Unit
price
(₹)
GST%
Total
Amoun
t
(₹)
Total
Amoun
t(Inc
GST)
(₹)
Total
amoun
t after
(budge
t
control
)
(₹)
Total
amoun
t after
budget
control
(Inc
GST)
(₹)
Saving
(₹)
Battery
box
MS
SHEET
BOX
1 2,500 18% 2,500 2,950 1,900 2,242 708
•Total amount of Battery box is ₹2,500; adding 18% GST the amount will be ₹2,950.
•Now if we take a cheap Battery then which will cost ₹ 1,900, then the total amount of
Battery box including 18% GST will be ₹2,242.
•Hence we will be saving ₹708.

17. • The original cost was =
 96,963
• The original amount Inc.GST = 115,603
• The amount after cutting of cost=
 75,663
• The amount after cutting of cost(Inc. GST)=
 88,529

18. • Total cost of original unit of SKYRIDER EV of 100 units=
115,603 ×100 = ₹1,15,60,300
• Total cost of new unit of SKYRIDER EV of 120 units
88,529× 120 = ₹1,06,23,480
Hence,
Marginal cost =
=
= ₹46,841
So the marginal cost of SKYRIDER EV is ₹46,841/-
Change in Cost
Change in
Quantity
9,36,820
20

19. What is budgetary control
• Budgetary control is financial jargon for managing
income and expenditure.
• In practice it means regularly comparing actual income
or expenditure to planned income or expenditure to
identify whether or not corrective action is required.

20. Why is it important?
• It facilitates a centralized control on various decentralized activities.
• It encourages more co-ordination among the different departments.
• It helps in eliminating wasteful expenses to improve profitability.
• Responsibility accounting- information is provided to managers
responsible for revenue and expenditure.

21. • Total cost of original unit of SKYRIDER EV of 120 units=
115,603 ×120 = ₹13,872,360
• Total cost of new unit of SKYRIDER EV of 120 units
88,529× 120 = ₹10,623,480
• Total amount of saving = 13,872,360 -10,623,480
= ₹3,248,880

22. • Now with the saving amount of ₹3,248,880.
• We can now invest it on:-
₹3,248,880
Promotion Advertisement Increment

23. Focus On Sales of EV in
India
• India sold more electric vehicles in September 2021 than any
month previously
• It's a glimmer of hope for an industry that has been struggling
with a global shortage in semiconductor chips.
• Electric vehicle sales - 121,900 this financial year - account for
only 1.66% of India's 20 million automobile sales
• Sales have been rising since April - the start of this financial
year - and are already nearing the previous year's total

24. • Prime Minister Narendra Modi's government is trying to
change that with a $3.5bn (£2.5bn) scheme to boost
manufacturing
• Electric vehicles will also cut emissions as pressure ratchets up
for India, the world's third-largest carbon emitter
• The electric alternative is also growing in appeal as global oil
prices surge, taking India's fuel import bill to a staggering
$24.7bn

26. Conclusion-How EV is the future
• No Gas Required
• More Convenient
• Savings
• No Emissions