Under this PPT,i have focused to make analysis of Cost sheet of 2 years and make projected cost sheet of succeeding year.

1. PREPARATION AND ANALYSIS OF COST
SHEET OF EVEREST FOOD PRODUCTS
PVT. LTD.

2. Contribution of each member
Mayank Dubey – Prepare Cost Sheet
and Analysis of Cost
Sheet.
Prabhanshu – Overview of Company
Krishna – Cost sheet diagram
and it’s components
Mahima Chaudhary – Swot Analysis
Pooja Rawat – Conclusion and
learning from project

3. Contents
 Overview of Everest Food Products PVT. LTD.
 Basic Definitions
 Concept of cost and it’s components
 Format of cost sheet
 Cost sheet of Everest Food Products PVT. LTD.
 Analysis of Cost Sheet
 Conclusion

4. Company Profile

5. Everest Food Products Pvt Ltd (Everest Spices) is an Indian
manufacturer, distributor and exporter of ground spices and
spice mixtures under the brand name Everest.
It was founded by VADILAL SHAH in 1981.
It’s headquarter is Mumbai,Maharastra ,India
Everest Masala is India’s largest selling spice brand
Slogan of Everest Masala - jo khane ko banaye Maa ke
haath ka khana or in other words...which makes food
the way mom made it.

6. Everest Masala offers more than 45 masala variants in the form
both pure and blends.
Everest Masala are used in more than 52 countries across the
world like U.K,U.S.A, Africa, UAE, Singapore to Australia etc
More than 370 crore (3.705 billion) packs of Everest product
were sold each year.
The success of Everest has reaped several rewards. It has been
the proud recipient of the Super brand status five times in
succession – 2003, 2006, 2009, 2012 and 2015.
Everest’s communication has always targeted the upper-end of
consumers giving the brand a very premium image
The aim of Everest has always been helping every mother feel empowered to
get the perfect taste in food and win her appreciation for the same.

7. Product ranges of Everest Food Products
VEG SPICES NON-VEG SPICES
PURE SPICES

8. ASAFOETIDA
EXOTIC RANGE

9. Competitors of Everest Spices in the
Market

11. Swot Analysis of Everest Food Products Pvt Ltd.
STRENGTH
 First mover
advantage
 Leadership
 Strong Market
Presence
 Quality
 Low pricing
WEAKNESS
 Less advertisement in
the market
 Less product innovation
 Less Product
development.

12. OPPORTUNITY
 Quick Cooking
 Good brand image
among market
 Customer loyalty
with company
products
 People trust on
ayurvedic products
THREAT
 Competition
 Sometimes
inferior raw
material
supplied

13. Basic Definitions
1
3
• Cost: It means the amount of expenditure incurred on a particular
thing.
• Costing: It means the process of ascertainment of costs.
•Cost Accounting :It is broader than costing. Cost accounting can
be defined as the technique of recording, classification, allocation,
reporting and control of costs.
Thus :
Cost Accounting = Costing + Cost Reporting + Cost Control

14. CONCEPT OF COST

15. Treatment of Stock
Raw Materials
15
Work In Progress
(WIP)
Finished Goods

16. Functional Classification of Indirect
Overheads
16
Factory
overheads
• The indirect expenses (overheads) incurred within the factory area
• E.g. Lubricants, Oil, works manager’s salary, factory rent, lighting. etc.
Administrati
on or office
Overheads
• The indirect expenses (OH) incurred within the administrative area
• E.g. Printing & stationery, accountant’s salary, office rent, office
insurance. Etc.
Selling &
distribution
Overheads
• The indirect expenses (OH) incurred in relation to the sales activities or
for the distribution of the product or services.
• E.g. Packing materials, printing & stationery, salesman’s salary,
advertising, showroom rent, logistics, manager salary bad debts. etc.

17. What is Cost Sheet??
17
• It is a statement which
A cost sheet is a
statement which
represents the various
costs incurred at
different stages of
business operations,
in a tabular format.….

18. Division of costs
18
DIRECT
LABOUR
PRIME
COST
DIRECT
EXPENSES TOTAL
COST
(COSTOF
SALES)
OFFICE
(ADMINIST
RATIONS
OVERHEAD
S)
FACTORY
COST
FACTORY
(WORKS
OVERHEAD
)
FACTORY
(WORKS
COST)
OFFICE
COST
(COST OF
PRODUCTIO
N)
OFFICE
COST
SELLING
(DISTRIBU
TION
OVERHEAD
S)
PRIME
COST

19. Cost sheet for the month/year….Unit Produced
Particulars Cost/Unit Total Cost
Opening Stock of Raw material
Add:-Purchase
Add:-Carriage Inward
Add:-Octroi
Less:-Closing Stock
Raw material consumed
Add:-Direct Wages
Add:-Other Direct Expenses
PRIME COST

20. Add:- Factory Overheads
factory lighting
Indirect Material
Indirect Labour
Factory rent ,rates and taxes
Factory Insurance
Depreciation On Plant and Machine
Insurance,maintenance of P & M
General Work expenses
Stationary
Supervisor and factory manager cost
Canteen & welfare expenses
Fuel and Power
Any other Factory related Expenses
Gross Factory Cost

21. Gross Factory Cost
Add:-Opening Stock of WIP
Less:-Closing Stock of WIP
Less:-Sale of Scrap
Net Factory Cost
Add:-Office and Administrative overheads:-
Office rent, rates and taxes
Insurance, depreciation of office building
Office Salaries
Office Lighting
Office stationary and printing
Postage ,legal exp.
Audit Fee
General office expenses
Director's Fee
Any expenses related to office and
administration
COST OF PRODUCTION

22. COST OF PRODUCTION
Add:-Opening Stock of Finished Goods
Less:-Closing Stock of Finished Goods
Cost Of Goods Sold
Add:-Selling & Distribution expenses:-
Advertisement
Salesman's salaries & commission
Commission Of Sales agents
Sales Manager's Salary
Sales Office expenses
Bad Debts
Collection Charges
Showroom expenses
Warehouse expenses
Packing expenses
Carriage Outward
Delivery expenses
Insurance, depreciation of delivery Vans
Cost of tender
Any other sales/distribution related expenses
Cost of Sales
ADD/LESS: PROFIT/LOSS
SALES

23. Price list of different products of Everest Spices
Product weight price Product weight Price
RAJWADI
GARAM
MASALA
25 gm 5.00 PAVBHAJI
MASALA
15.g 5.00
50 gm 12.00 50.g 22.00
100 gm 23.00 100.g 40.00
200 gm 46.00 200.g jar 75.00
500 gm 110.00 500.g ar 155.00
AGMARK
HING
50 gm 17.50 Special Garam Masala 50 gm 8
100 gm 15
100 gm 34.00 200gm 29
200 gm 67.00 500 gm 70
500 gm 165.00 1kg 140
SUPER
GARAM
MASALA
15 gm 5.00 TEA MASALA 15.g 5
50 gm 8.00 50.g 25
100 gm 15.00 100.gm 48
200 gm 29.00 500 gm 205
500 gm 70.00 500.g Jar 175.00
NO.300
HING
50.g 12.00 PUN.
GREVI
MASALA
15.g 5.00
100.g 18.00 50.g 18.00
200.g 34.00 100.g 35.00
500.g 83.00 200.g 68.00
1.kg 155.00 500.g 130.00
SUPER HING(DABBI) 50.g 17.00 CHHOLE 15.g 5.00

24. 100.g 33.00 CHANA
MASALA
50.g 18.00
100.g 35.00
DELUX HING
(DABBI)
50.g 35.00 200.g 68.00
100.g 65.00 500.g 130.00
KASHMIRI CHILLI
POWDER
100.g 27.00 IDLE
SABHAR
MASALA
15.g 5.00
200.g 50.00 50.g 18.00
500.g 120.00 100.g 35.00
200.g 68.00
CHILLI
POWDER
50.g 7.50 500.g 130.00
100.g 14.00
200.g 27.00 BIRIYANI
MASALA
15.g 5.00
500.g 65.00 50.g 17.00
1.kg 125.00 100.g 33.00
FINE
CLASSIC
5.kg 525.00
5.kg 600.00 RAJGARA LOT 100.g 16.00
200.g 32.00
Turmeric powder 50.g 7.50 500.g 80.00
100.g 14.00
200.g 27.00

25. 100.g 33.00 CHANA
MASALA
50.g 18.00
100.g 35.00
DELUX HING
(DABBI)
50.g 35.00 200.g 68.00
100.g 65.00 500.g 130.00
KASHMIRI CHILLI
POWDER
100.g 27.00 IDLE SABHAR
MASALA
15.g 5.00
200.g 50.00 50.g 18.00
500.g 120.00 100.g 35.00
200.g 68.00
CHILLI
POWDER
50.g 7.50 500.g 130.00
100.g 14.00
200.g 27.00 BIRIYANI
MASALA
15.g 5.00
500.g 65.00 50.g 17.00
1.kg 125.00 100.g 33.00
FINE
CLASSIC
5.kg 525.00
5.kg 600.00 RAJGARA LOT 100.g 16.00
200.g 32.00
Turmeric powder 50.g 7.50 500.g 80.00
100.g 14.00
200.g 27.00

26. LAL MARKO HING 1.kg 190.00
SURTI MASALA 1.kg 105.00
LIMBU-SODA 50.g 7.00
DELUX MASALA 500.g 140.00 500.g 65.00
SP.TEA MASALA 1.kg 214.00 CHHAS MASALA 50.g 8.00
500.g 75.00
JINGER POWDER 1.kg 180.00
CHEVDA MASALA 50.g 7.00
DALSHAKMASALA 250 g 70.00
SP.G.MASALA 1.kg 175.00
MARI POWDER 500.g 204.00
SPECIAL GINGER
POWDER
1 kg 210.00
FISH
MASALA
50.g 20.00
100.g 38.00 GUNDAKERI
MASALA
200.g 29.00
200.gjar 74.00 500.g 70.00
500.gjar 150.00 GOL-KERI
MASALA
200.g 34.00
AACHAR
MASALA
100.g 15.00 500.g 80.00
200.g 29.00
500.g 70.00

27. COST SHEET OF EVEREST FOOD PRODUCTS PVT.LTD
NOTE :-
 There are 3 years of projection of cost sheet
o YEAR 2019-2020
o YEAR 2018 -2019
o YEAR 2017 – 2018
 Components of cost sheet has taken on assumption basis.
 We have taken nearest fig. from amount mentioned in annual
returns of Everest Food Products Pvt.Ltd.
 Amounts are taken in Rupees.
 We have taken approx 12 lacs Unit s ( packet ) of production of
Garam Masala Powder in cost sheet.
 Each packet of Everest Garam Masala Powder is 100 Gram.

28. Ingredients of Everest Garam Masala
INGREDIENTS
Qty.in 100 gm.
Of Garam
Masala
AMT.
(In Rs.)
CORIANDER 10 3
CHILLI 10 2
CUMIN 10 2
CASSIA LEAF 10 2
BLACK PEPPER 10 3
CLOVE 10 3
BLACK CARDAMOM 5 2
STAR ANISE 5 3
FENNEL 5 2
DRY GINGER 10 3
COMMON SALT 5 2
CARAWAY 10 3
TOTAL 100 30

29. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 Lacs Unit Of Production
Amount
in Rupee.
YEARS (2017-2018 TO 2019-2020 )
Particulars 2019-2020
COST PER
UNIT
2018-2019
COST PER
UNIT
2017-2018
COST PER
UNIT
Opening Stock of Raw material 3,500,000 4,250,600 2,800,000
Add:-Purchase 35,400,800 26,541,400 23,535,600
Add:-Carriage Inward 900,000 750,000 425,000
Less:-Closing Stock 3,800,800 3,500,000 4,250,600
Raw material consumed 36,000,000 30 28,042,000 23.36 22,510,000 18.75
Add:-Direct Wages 673,495 670,000 400,000
Add:-Other Direct Expenses 921,268 900,000 530,000
PRIME COST 37,594,763 31.32 29,612,000 24.67 23,440,000 19.53
Add:- Factory Overheads 1,466,000 1.22 1,214,000 1.01 1,080,100 0.90
Add:-Opening Stock of WIP 633,000 600,000 408,000
Less:-Closing Stock of WIP 700,000 633,000 600,000
Less:-Sale of Scrap 180,000 169,000 139,900
Net Factory Cost 1,219,000 1.01 961,000 0.80 748,200 0.62
Add:-Office and Administrative overheads 1,350,870 1.12 1,290,000 1.07 1,226,000 1.02
Add:-Opening Stock of Finished Goods 1,680,000 2,000,000 1,750,000
Less:-Closing Stock of Finished Goods 2,100,000 1,680,000 2,000,000
Net Office and Administrative Cost 930,870 0.77 1,610,000 1.34 976,000 0.81
Add:-Selling & Distribution expenses:- 1,663,000 1.38 1,672,000 1.39 1,572,000 1.31
Total Cost of Sales 41,407,633 34.50 34,003,000 28.33 26,736,200 22.28
ADD/LESS: PROFIT/LOSS 5,640,767 4.70 5,095,290 4.24 3,001,000 2.50
SALES 47,048,400 39 39,098,290 33 29,737,200 25

30. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 LACS UNIT OF PRODUCTION
Amount
in Rupee.
YEARS (2017-2018 TO 2019-2020 )
Particulars 2019-2020 2018-2019 2017-2018
Opening Stock of Raw material 3,500,000 4,250,600 2,800,000
Add:-Purchase 35,400,800 26,541,400 23,535,600
Add:-Carriage Inward 900,000 750,000 425,000
Less:-Closing Stock 3,800,800 3,500,000 4,250,600
Raw material consumed 36,000,000 28,042,000 22,510,000
Add:-Direct Wages 673,495 670,000 400,000
Add:-Other Direct Expenses 921,268 900,000 530,000
PRIME COST 37,594,763 29,612,000 23,440,000

31. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 Lacs unit of production Amount in Rupee
Factory Overheads 2019-020 2018-019 2017-018
factory lighting 560,000 500,000 390,000
Indirect Material 174,000 170,000 119,000
Indirect Labour 90,000 72,000 65,000
Factory rent ,rates and taxes 230,000 190,000 175,000
Factory Insurance 55,000 50,000 47,300
Depreciation On Plant and Machine 248,000 230,000 201,000
General Work expenses 35,000 32,000 39,000
Stationary 29,000 25,000 19,800
Supervisor and factory manager cost 45,000 42,000 24,000
Gross Factory Cost 1,466,000 1,214,000 1,080,100
Add:-Opening Stock of WIP 633,000 600,000 408,000
Less:-Closing Stock of WIP 700,000 633,000 600,000
Less:-Sale of Scrap 180,000 169,000 139,900
Net Factory Cost 1,219,000 961,000 748,200

32. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 Lacs unit of Production Amount in Rupee
Office and Administrative overheads 2019-020 2018-019 2017-018
Office rent, rates and taxes 450,000 420,000 400,000
Insurance,depreciation of office building 134,000 131,000 130,000
Office Salaries 507,000 500,000 480,000
Office Lighting 102,000 93,000 90,000
Office stationary and printing 56,000 47,000 41,000
Postage ,legal exp. 11,300 12,000 9,000
Audit Fee 32,570 30,000 25,000
General office expenses 13,000 12,000 11,000
Director's Fee 45,000 45,000 40,000
COST OF PRODUCTION 1,350,870 1,290,000 1,226,000
Add:-Opening Stock of Finished Goods 1,680,000 2,000,000 1,750,000
Less:-Closing Stock of Finished Goods 2,100,000 1,680,000 2,000,000
Cost Of Goods Sold 930,870 1,610,000 976,000

33. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 Lacs Unit Of Production Amount in Rupee.
Selling & Distribution expenses 2019-020 2018-019 2017-018
Advertisement 210,000 230,000 200,000
Salesman's salaries & commission 140,000 168,000 160,000
Commission Of Sales agents 102,000 90,000 95,000
Sales Manager's Salary 168,000 168,000 160,000
Sales Office expenses 75,000 68,000 65,000
Bad Debts 108,000 100,000 95,000
Collection Charges 58,000 40,000 40,000
Warehouse expenses 202,000 200,000 190,000
Packing expenses 295,000 310,000 280,000
Carriage Outward 305,000 298,000 287,000
Selling & Distribution Cost 1,663,000 1,672,000 1,572,000
Total Cost of Sales 41,407,633 34,003,000 26,736,200
ADD/LESS: PROFIT/LOSS 5,640,767 5,095,290 3,001,000
SALES 47,048,400 39,098,290 29,737,200

34. Watch Cost sheet and Annual return
of the Given Years Through
Hyperlink:-
 Excel sheet of Cost Sheet
 P & L A/C of 2019-2020
 P & L A/C of 2018-2019
 P & L A/C of 2017-2018

35. Analysis of Cost
Sheet of Everest
Food Products
Pvt.Ltd.
For the Year 2017
to 2020

36. CALCULATION OF DIFFERENCE AMOUNT OF PRIME COST
12 LACS UNIT OF PRODUCTION
Amount
in Rupee.
YEARS (2017-2018 TO 2019-2020 )
Particulars 2019-2020 2018-2019 DIFFER. 2018-2019 2017-2018 DIFFER.
Opening Stock of Raw material 3,500,000 4,250,600 (7,50,600) 4,250,600 2,800,000 1,450,600
Add:-Purchase 35,400,800 26,541,400 8,859,400 26,541,400 23,535,600 3,005,800
Add:-Carriage Inward 900,000 750,000 150,000 750,000 425,000 325,000
Less:-Closing Stock 3,800,800 3,500,000 300,800 3,500,000 4,250,600 -750,600
Raw material consumed 36,000,000 28,042,000 7,958,000 28,042,000 22,510,000 5,532,000
Add:-Direct Wages 673,495 670,000 3,495 670,000 400,000 270,000
Add:-Other Direct Expenses 921,268 900,000 21,268 900,000 530,000 370,000
PRIME COST 37,594,763 29,612,000 7,982,763 29,612,000 23,440,000 6,172,000

37. PRIME COST ANALYSIS
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
2019-020 2018-019 2017-018
D.Expense
D.Wages
Raw Mat.

38. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 Lacs unit of production Amount in Rupee
Factory Overheads 2019-020 2018-019 DIFF. 2018-019 2017-018 DIFF.
factory lighting 560,000 500,000 60,000 500,000 390,000 110,000
Indirect Material 174,000 170,000 4,000 170,000 119,000 51,000
Indirect Labour 90,000 72,000 18,000 72,000 65,000 7,000
Factory rent ,rates and taxes 230,000 190,000 40,000 190,000 175,000 15,000
Factory Insurance 55,000 50,000 5,000 50,000 47,300 2,700
Depreciation On Plant and Machine 248,000 230,000 18,000 230,000 201,000 29,000
General Work expenses 35,000 32,000 3,000 32,000 39,000 -7,000
Stationary 29,000 25,000 4,000 25,000 19,800 5,200
Supervisor and factory manager cost 45,000 42,000 3,000 42,000 24,000 18,000
Gross Factory Cost 1,466,000 1,214,000 252,000 1,214,000 1,080,100 133,900
Add:-Opening Stock of WIP 633,000 600,000 33,000 600,000 408,000 192,000
Less:-Closing Stock of WIP 700,000 633,000 67,000 633,000 600,000 33,000
Less:-Sale of Scrap 180,000 169,000 11,000 169,000 139,900 29,100
Net Factory Cost 1,219,000 961,000 258,000 961,000 748,200 212,800
FACTORY COST ANALYSIS

39. 0
500000
1000000
1500000
2000000
2500000
3000000
2019-
2020
2018-
2019
2017-
2018
Chart Title
NET FAC.COST
GROSS FAC.COST
FACTORY OVERHEAD ANALYSIS

40. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 Lacs unit of Production Amount in Rupee
Office and Administrative overheads 2019-020 2018-019 DIFF. 2018-019 2017-018 DIFF.
Office rent, rates and taxes 450,000 420,000 30,000 420,000 400,000 20,000
Insurance,depreciation of office building 134,000 131,000 3,000 131,000 130,000 1,000
Office Salaries 507,000 500,000 7,000 500,000 480,000 20,000
Office Lighting 102,000 93,000 9,000 93,000 90,000 3,000
Office stationary and printing 56,000 47,000 9,000 47,000 41,000 6,000
Postage ,legal exp. 11,300 12,000 -700 12,000 9,000 3,000
Audit Fee 32,570 30,000 2,570 30,000 25,000 5,000
General office expenses 13,000 12,000 1,000 12,000 11,000 1,000
Director's Fee 45,000 45,000 0 45,000 40,000 5,000
COST OF PRODUCTION 1,350,870 1,290,000 60,870 1,290,000 1,226,000 64,000
Add:-Opening Stock of Finished Goods 1,680,000 2,000,000 -320,000 2,000,000 1,750,000 250,000
Less:-Closing Stock of Finished Goods 2,100,000 1,680,000 420,000 1,680,000 2,000,000 -320,000
Cost Of Goods Sold 930,870 1,610,000 679,130 1,610,000 976,000 634,000

41. 0
500000
1000000
1500000
2000000
2500000
3000000
3500000
2019-2020 2018-2019 2017-2018
COST OF GOODS SOLD
OFFICE & ADM.OVERHEAD
OFFICE AND ADMINISTRATIVE OVERHEAD ANALYSIS

42. COST SHEET OF EVEREST FOOD PRODUCTS PVT. LTD.
FOR THE YEAR ENDED 2017-018 TO 2019-020
12 Lacs Unit Of Production Amount in Rupee.
Selling & Distribution expenses 2019-020 2018-019 DIFF. 2018-019 2017-018 DIFF
Advertisement 210,000 230,000 -20,000 230,000 200,000 30,000
Salesman's salaries & commission 140,000 168,000 -28,000 168,000 160,000 8,000
Commission Of Sales agents 102,000 90,000 12,000 90,000 95,000 -5,000
Sales Manager's Salary 168,000 168,000 0 168,000 160,000 8,000
Sales Office expenses 75,000 68,000 7,000 68,000 65,000 3,000
Bad Debts 108,000 100,000 8,000 100,000 95,000 5,000
Collection Charges 58,000 40,000 18,000 40,000 40,000 0
Warehouse expenses 202,000 200,000 2,000 200,000 190,000 10,000
Packing expenses 295,000 310,000 -15,000 310,000 280,000 30,000
Carriage Outward 305,000 298,000 7,000 298,000 287,000 11,000
Cost of Sales 1,663,000 1,672,000 -9,000 1,672,000 1,572,000 100,000
ADD/LESS: PROFIT/LOSS 5,640,767 5,095,290 545,477 5,095,290 3,001,000 2,094,290
SALES 47,048,400 39,098,290 7,950,110 39,098,290 29,737,200 9,361,090

43. 0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
2019-2020 2018-2019 2017-2018
PROFITS
SELLING & DISTRIBUTION
OVERHEAD
ANALYSIS OF COST OF SALES AND PROFITS

44. PERCENTAGE OF HEAD OF EXP. OF NET AMOUNT OF SALES.
COMPARISON BETWEEN RATIO OF
DIFFERENT HEADS OF EXPENSES
PARTICULARS 2019-020
UNIT COST
WISE
2018-019
UNIT COST
WISE
2017-018
UNIT COST
WISE
SALES
47,048,400 39 39,098,290 33 29,737,200 25
PRIME COST
37,594,763 31.32 29,612,000 24.67 23,440,000 19.53
PRIME COST/SALES RATIO 79.90% 80.30% 75.73% 74.75% 78.82% 78.12%
FACTORY COST 1,466,000 1.22 1,214,000 1.01 1,080,100 0.9
FACTORY COST/SALES RATIO
3.11% 3.12% 3.10% 3.06% 3.63% 3.60%
OFFICE & ADMINISTRATIVE COST
1,350,870 1.12 1,290,000 1.07 1,226,000 1.02
OFFICE & ADM.COST/SALES RATIO 2.87% 2.87% 3.29% 3.24% 4.12% 4.08%
SELLING & DISTRIBUTION COST 1,663,000 1.38 1,672,000 1.39 1,572,000 1.31
SELLING & DIS.COST/SALES RATIO 3.53% 3.53% 4.27% 4.21% 5.28% 5.24%
TOTAL COST OF SALE 41,407,633 34.5 34,003,000 28.33 26,736,200 22.28
TOTAL COST OF SALE/SALE RATIO 88.01% 88.46% 86.96% 85.84% 89.90% 89.12%
PROFIT 5,640,767 4.7 5,095,290 4.24 3,001,000 2.5
PROFIT-SALE 11.98% 12.05% 13.03% 12.84% 10.09% 10%

45. ANALYSIS OF PERCENTAGE CHART:-
1. All head of exp.are increasing constantly year by year.
2. In the given chart Prime Cost are lowest i.e 75.73% in 2018-2019
because opening stock was highest in that year.
3. Here Prime Cost acquire approx more than 75 % of Sales figure in
each year.So,Prime cost should be utilized properly.
4. Due to increasing Prime Cost ,it shows that Company makes
maximum production.
5. Factory Cost are almost consistent in each year.
6. Percentage of Office and Administrative Cost are higher in 2017-
018 because sales is low in comparison of other years.
7. Percentage of Selling & Distribution Cost is constantly decreasing
yearwise because sales are increasing in higher ratio in compare
with selling and distribution cost.

46. SOME CALCULATIONS
PARTICULARS 2019-2020 2018-2019 2017-2018
VARIABLE COST 41376863 31560400 27435400
FIXED COST 1639570 1574000 1508300
CONTRIBUTION-(SALES-V.C) 5671537 7537890 2301800
P/V RATIO-
CONTRIBUTION/SALES * 100 12.05% 19.27% 7.74%
BREAK EVEN SALES=FIXED/P.V RATIO 13606390 8168137 19487080
MARGIN OF SAFETY=SALES-B.E.P 33442010 30930153 10250120
SOME ASSUMPTIONS ARE:-
1. FACTORY RENT RS.1,50,000 ARE FIXED IN EACH YEAR.
2. DEPRECIATION ARE TAKEN ON WDV METHOD.
3. OFFICE RENT RS.3,00,000 ARE FIXED IN EACH YEAR.
4. FACTORY INSURANCE ARE FIXED.
5. AUDIT FEE ARE VARIBALE IN NATURE.

47. SOME KEY POINTS OF THIS COST SHEET
 Due to inflation there are increase in the amount of
expense in compare to each proceeding year .
 Sales per unit in 2019 was Rs.39,in 2018-Rs.33 and in
2017-Rs25.
 After analysis of expenses, company is not increasing it’s
product price proportionately.
 Company should cut and reduce it’s expenses.
 Overall cost sheet of company is very sound and
efficient.

48. LEARNING FROM THIS PROJECT
WORK
 WE READ ANNUAL RETURN OF MANY COMPANIES FOR MAKING THIS PPT.
 IT HELPS US TO KNOW PRODUCTS AND FINANCIAL STRUCTURE OF MANY COMPANIES.
 IT HELPS US TO KNOW ABOUT WORDS THAT IS USED IN BUSINESS TERMINOLOGY.
 WE COME TO KNOW HOW A TEAM WORKS TOGETHER.
 WE ALSO TRY TO ANALYSE AND INTERPRET THE FINANCIAL POSITION OF DIFFERENT COMPANIES.
 WE COME TO KNOW HOW COST SHEET IS PREPARED.
 IT HELPS US TO WORK ON HUGE AMOUNT OF DATA.

49. 49