2. OUTLINE OF THE PRECENTATION
• Introduction to organization.
• Management accounting VS financial management.
• Application of activity costing and lifecycle costing .
• Benefit to the organization .
• Managerial implication.
3.
4. Introduction to company
• ISO 9001 certified company
• 2.1 b foreign direct investment.
• 10.70 B contribution to government income
• Providing 3000 employments opportunity
• 100000 families benefited each year through direct
&indirect employments.
5. Introduction to company
• Values
– Service from the heart
– Creating future
– Champion of change,
– Exceptional performance,
– Responsible leadership
– One team
– Uncompromising integrity.
6. Introduction to company
• Products
– Voice connection
– Data connection
– Easy cash
– Dialog TV
– Dialog mobile
– Dialog computers
7. Introduction to company
• Current price for product and services
–
VOICE DATA
MR M SMS MR D N AD 1MB
300 Rs 1.50 Rs 0.20 199 1GB 1GB Rs 0.30
600 Rs 1.50 Rs 0.20 449 2GB 4GB Rs 0.20
1200 Rs 1.50 Rs 0.20 1949 15GB 10GB Rs 0.20
9. Financial management
• This is a managerial activity which is concerned with
the planning and controlling of the firm’s financial
resources.
• Function
– Investment.
– Financing.
– Dividend or profit allocation.
– Liquidity or short term asset mix decision.
10. Financial accounting
• This is the process of COLLECTING AND RECORDING monitory
transaction and events systematically, summarizing them and
communicating the results of transactions and events in the
form of information to interested party to facilitate the
decision making.
11. Management accounting
• This is a professional practice that seeks to provide
information to assist organizational managers in their
decision making.
– Information are internal to the organization.
– Managers use information for plan short and long term
future.
– Plan can be put in to action and monitored.
12. Application of the concept
• ABC (for one minute voice call)
– Service centre cost - 0.15
– It equipment cost – 0.07
– Service providers cost – 0.20
– Selling and Distribution cost – 0.10
– Utility cost – 0.07
– Rentals - 0.12
– Material cost - 0.10
– Insurance -0.04
• Total cost 0.85
13. Important of the concept
• ABC
– Accurately calculate the cost for the product.
– Understand the overhead better.
– Everyone can understand easily.
– Utilize the unit cot such as minute cost, second cost
and one MB cost.
– Make visible waste and non value added activities.
– Support performance management.
– Facilitate benchmarking.
14. Important of the concept(cont)
• ABC(cont)
– Determine actual cost
– Eliminate overpricing
– Accurate and comprehensive understanding of overhead
– Make unvalued adding activities more visible
– Support other management technique such as continuous
improvement, score card and performance management.
15. Application of the concept
• PLC
–STAGES COST
Development state •Research and development cost
•Specification
•Prototype manufacturer
•Design
•Tooling
Introductory stage •Marketing communication and complain
•Selling and distribution
•Product support cost
Growth stage •Tooling and social welfare cost
•Selling and distribution
•Product support cost
Maturity stage •Rebranding
•Selling and manufacturing
•Product support cost
Decline stage • Decommissioning
16. Important of the concept
• PLC
– Foresight the companies cost.
– Make aware the new product development.
– Keeps companies relevant in the market and
industry.
– Increased advertising.
– Better budgeting.
– Increase in research and development.
17. Important of the concept
• PLC(cont)
– Generate revenue
– Lower cost
– Can Increase the revenue and minimize the cost in
the particular lifecycle
– Promote long-term revering
– It provides an overall framework for considering
total incremental costs over the entire span of
products.
18. Managerial implication
• PLC is better then ABC
VOICE DATA
MR M SMS MR D N AD 1MB
300 Rs 1.50 Rs 0.20 199 1GB 1GB Rs 0.30
600 Rs 1.50 Rs 0.20 449 2GB 4GB Rs 0.20
1200 Rs 1.50 Rs 0.20 1949 15GB 10GB Rs 0.20