This document provides information about Lalbag Chemical & Perfumery Works Ltd's accounting practices. It discusses their cost accounting methods, including labor costing which treats production labor as fixed and indirect labor as monthly. It also describes their use of historical costing to value assets on the balance sheet at original purchase price. Finally, it lists their fixed costs like salaries and buildings, and variable costs like materials and utilities.

1. Welcome To Our
Presentation

2. Name Id No
Tasnia Anowar 1669
Tania Sultana 1682
Md.Abdullah-Al-Noman
(Group Leader)
1693
Md.Hamidur Rahman 2327
Accounting Ants

3. Cost accounting method system technique followed by
“Lalbag Chemical & Perfumery Works Ltd”

4. Labor costing system of “Lalbag Chemical
& Perfumery Works Ltd”
Their labor costing regarding the production
labor cost is fixed and has a fixed structure
based on the production of units.And indirect
labor cost is based on a monthly basis.

5. Cost accounting techniques of “Lalbag
Chemical & Perfumery Works Ltd”
Historical Cost Concept
• Recently they purchase a building after 1998 for
20 lakh
• Original building price on balance sheet 20 lakh
• Even current market values of this building is
well 30 lakh.
• But LCPWL will keep on its balance sheet 20
lakh until its either retired or sold.

6. Their Direct
Material Cost
Their Indirect
material Cost
Their Material
Cost

7. Their Selling &
Distribution Cost.
How do they assess
their opportunity cost

8. Their Overtime
procedures?
Their Bonus plan
system
Their Labor salaries
paid system

9. What About their Fixed & Variable
Cost?
Their Variable Cost
Wages representatives
Utilities
Materials used in production
Their Fixed Cost
Salaries of employees
Buildings Rent
Machinery
Insurance cost

10. What inventory method is followed by
Lalbag Chemical & Perfumery Works Ltd:
Lalbag Chemical & Perfumery Works Ltd follows
FIFO methods for recording inventory.

11. House rent cost of the company:
There business premises are located at their own
building and land.Hence they have no house rent
required.

12. Transportation facilities of the company:
They provide transport facilities pick up and drop outs to
their employees to accelerate transportation facilities.

13. weekend facilities or opportunities:
They have weekend of one day in a week
(Sunday).
They provide parental leave,
They provide Sick leave
leaves as required by the employees that are
reasonable.

14. Internal auditing cost:
They have no any
internal auditing cost

15. Their Salaries affected by the leaves
 If employee want to leaves on middle of the
month lalbag company pay the salary
according employees working hours.
 Sometimes they pay the full salary if that
employee may show the proper reasons for
their leaves or absence

16. What about their warehouse cost
They are small manufacturer company that they
keeps inventory in their warehouse and pay for
warehouse staff to assemble products for
shipment.

17. What about their cost of good sold

18. Opportunity Cost
Opportunity Cost =
Return of Most Lucrative Option –
Return of Chosen Option

19. Leaves
Leaves are allowed for emergencies and proper
reasons like:
 Emergencies
 Sick leave
 Parental leaves,
 Festival leaves and
 Any other reasonable

20. Other Facilities we provided to
Workers:
 Medical Facilities
 Incentive & Bonuses
 Lunch & Tiffin Allowance
 Transport Facilities
 Entertainment Facilities
 surprise gift for adroit employees

21. Administrative expense
 Accounting staff salaries
 Building rent
 Executives wages and benefits
 Depreciation on office fixtures and equipment
 Insurance
 Various office supplies, accounting and tax fees, legal
fees, and electricity and water bills

22. Recruitment Process
 Identify a job vacancy
 Conduct a job Analysis
 Prepare a job Description
 Prepare a person specification and Advertise
 Conduct an Interview
 Screening
 Select the Proper persons and Examine them.
 Select the best one for the Job

23. Labor Turnover
Labor turnover is the ratio of the number of
workers leaving the organization during a given
period to the average number of workers of that
organization during that period.

24. Steps for reducing labor turnover
 Hire the right people
 Fire people who don’t fit
 Keep compensation and benefits current
 Recognize and reward employees
 Offer flexibility
 Prioritize employee happiness