The document discusses cost analysis and control with reference to Hero Motocorp Pvt Ltd. It defines key terms like cost, cost-benefit analysis, and the need for cost reduction strategies.
The scope of the study is restricted to analyzing Hero Motocorp's cost systems and evaluating ways to modify the current system. Data will be collected from Hero Motocorp officers, journals, accounting records, books, and statistical records.
The objectives are to provide a framework for cost and cost control analysis, examine Hero Motocorp's cost system and objectives, and evaluate and propose modifications to the existing cost system with regards to different cost types and performance cost formulation.
A report on the Financial Analysis of Nestle India Ltd. and its comparison with the other leading Fats Moving Consumer Goods (FMCG) players in India. The Analysis also includes Trend Analysis and Industry Analysis.
A report on the Financial Analysis of Nestle India Ltd. and its comparison with the other leading Fats Moving Consumer Goods (FMCG) players in India. The Analysis also includes Trend Analysis and Industry Analysis.
I've tried my level best to indulge in arranging and providing the best information regarding this topic. check it out ,i hope it caters to your requirements.
Dont just copy paste, take reference and i am sure you can make it better than me.
Have a good day.!
Regards : Manik Dutt
_kindly comment if you find it worth your concern_
I've tried my level best to indulge in arranging and providing the best information regarding this topic. check it out ,i hope it caters to your requirements.
Dont just copy paste, take reference and i am sure you can make it better than me.
Have a good day.!
Regards : Manik Dutt
_kindly comment if you find it worth your concern_
Life Cycle Costing Critical Evaluation ReportAnkur Aggarwal
Life Cycle Costing (LCC) is an important economic analysis used in the selection of alternatives that impact both pending and future costs. It compares initial investment options and identifies the least cost alternatives for a twenty year period.
The biggest challenge to analyzing and computing costs is the allo.docxmattinsonjanel
The biggest challenge to analyzing and computing costs is the allocation of overhead. Imagine that you are building a new home. When meeting with the contractor, he or she will give you an approximate price to build the home. That price is based on the builder’s cost to build the house as well as the profit expected for the contractor. Based on the home plans and supplier relationships, the builder can easily calculate the cost of materials and labor of subcontractors who would carry out the day-to-day construction.
It gets complicated when it comes to the other costs the builder incurs. These costs, known as overheads, need to be recovered, but they are not directly tied to the cost of your home. Examples of such costs would be advertising, gasoline for trucks used by supervisors to drive between construction sites, salaries for secretaries and support staff in the office, and any other cost of the sort. How can a builder take these costs and allocate them fairly across all projects? In this module, you will explore job-order costing systems—one method commonly used to allocate overheads and estimate costs of a project provided to a customer.
Cost management analysts work very closely with other management colleagues to put together cost management systems that coincide with the overall decision-making strategies of the organization. One important component of the cost management system is the product costing system that accumulates all production costs and assigns them to the appropriate products. The most commonly used product costing systems are job-order costing and process costing.
When job-order costing is implemented, each separate job is treated as a separate unit of output and costs are assigned as the resources are used up. A job is defined as a single product or small group of similar products. Job-order costing is useful for identifying which types of jobs will be most profitable for a company, predicting future costs, managing costs, contract renegotiations, and financial reporting. When process costing is used, all units produced during the time period are considered output. The costs are not separated and broken down for each individual unit as they are with job-order costing.
The first element of managerial accounting is cost behavior within an organization. Management analysis of cost behavior influences cost classifications and decisions made in order to control costs. This module covers two main concepts—cost management and how it is used in strategic decision making. In any strategic decision making, ethics always should be top priority. Not only is making ethical decisions the correct thing to do, but it is also key to running an efficient, long-term business.
For example, assume you are in charge of the pharmacy in a hospital. In your role as manager, you need to help control the cost of medications administered to patients. Many of these drugs are very expensive and are never fully reimbursed by the patients’ insuran ...
Following Details,
1) Different cost management strategies - Target costing, Kaizen costing, life cycle costing
2. Activity based management
3. Balance scorecard and its significance as a performance measurement techniques
4. Performance measures for decentralized unit
BBA 2301, Principles of Accounting II 1 Course LeaCicelyBourqueju
BBA 2301, Principles of Accounting II 1
Course Learning Outcomes for Unit VIII
Upon completion of this unit, students should be able to:
7. Explain how financial information influences both short-term and long-term management decisions.
7.1 Describe the use of standard cost manufacturers and service businesses.
8. Discuss operational and capital budgets.
8.1 Describe capital budgeting methods.
8.2 Identify the use of intangible benefits in capital budgeting.
Course/Unit
Learning Outcomes
Learning Activity
7.1
Unit Lesson
Chapter 26, pp. 26-1 to 26-24
Webpage: Balanced Scorecard Basics
Video: What is a balanced scorecard: A simple explanation for anyone
Unit VIII Case Study
8.1
Unit Lesson
Chapter 27, pp. 27-1 to 27-19
Unit VIII Case Study
8.2
Unit Lesson
Chapter 27, pp. 27-1 to 27-19
Unit VIII Case Study
Required Unit Resources
Chapter 26: Standard Costs and Balanced Scorecard, pp. 26-1 to 26-24
Chapter 27: Planning for Capital Investments, pp. 27-1 to 27-19
In order to access the following resources, click the links below.
Balanced Scorecard Institute. (n.d.). Balanced scorecard basics. https://balancedscorecard.org/bsc-basics-
overview/
For the video resource below, a transcript and closed captioning are available upon accessing the video.
Marr, B. (2019, June 24). What is a balanced scorecard: A simple explanation for anyone [Video]. Cielo24.
https://c24.page/2s4pmxpj2kpwnprckg6p8tcjtu
Unit Lesson
Introduction
This final unit will conclude the study of managerial accounting. This lesson will share important content for
managers in manufacturing, merchandising, and service companies. Content includes estimating future costs,
implementing financial and non-financial performance measures, and incorporating capital budgeting.
Costing requires you to make estimates. As noted in a previous unit, many people are uncomfortable with this
task, as they are used to having objective numbers given to them. However, as much as the future is
UNIT VIII STUDY GUIDE
Management: Costs and Capital Investing
https://balancedscorecard.org/bsc-basics-overview/
https://c24.page/2s4pmxpj2kpwnprckg6p8tcjtu
BBA 2301, Principles of Accounting II 2
UNIT x STUDY GUIDE
Title
unpredictable, we are still required to use our experience and judgment to chart a path forward. In this unit,
you will learn about standard costs. Partially based on prior period actual costs, they provide the basis for
budgeting and subsequent evaluation. Management accountants, no matter the title, are integral to the
development of standard costs, implementation of the balanced scorecard, and the capital budgeting process.
Pay attention as you read, review, and evaluate this unit as it is almost wholly transferable to any company.
Consider the following questions and how you would respond to each as you move through this unit.
As the chief accounting officer (CAO) or chief ...
Week 4 OverviewThis week we cover Budgets and Standard Cost Syst.docxjessiehampson
Week 4 Overview
This week we cover Budgets and Standard Cost Systems, of the text.
There are many advantages to budgeting and some of them are listed below:
· Budgets define goals and objectives that can serve as benchmarks for evaluating subsequent performance.
· Budgets coordinate the activities of the entire organization by integrating the plans of its various parts. Budgeting helps to ensure that everyone in the organization is pulling in the same direction.
· The budgeting process can uncover potential bottlenecks before they occur.
· The budgeting process provides a means of allocating resources to those parts of the organization where they can be used most effectively.
· Budgets force managers to think about the plan for the future. In the absence of the necessity to prepare a budget, many managers would spend all of their time dealing with day-to-day emergencies.
· Budgets communicate management’s plans throughout the organization.
When preparing a master budget you will want to prepare other budgets in the following order: sales budget, production budget, direct material budget, direct labor budget, manufacturing overhead budget, selling and administrative expense budget and cash budget.
Flexible budgets which takes into account how changes in activity affect costs. A flexible budget is an estimate of the revenues and costs that are expected given actual levels of activity. A flexible budget approach recognizes that budget can be adjusted to show what cost should be for the actual level activity. Remember, as you move forward, that all costs are not fixed. This is an error that is made in static budgeting.
Success factor training
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LearningObjectives
After studying Chapter 6, you will be able to:
Understand the signi�icance of cost behavior to decision making and control.
Identify the interacting elements of cost-volume-pro�it analysis.
Explain the break-even equation and its underlying assumptions.
Calculate the effect on pro�its of changes in selling prices, variable costs, or �ixed costs.
Calculate operating leverage, determine its effects on changes in pro�it, and understand how
margin of safety relates to operating leverage.
Find break-even points and volumes that attain desired pro�it levels when multiple products are
sold in combination.
Obtain cost functions by account analysis, the engineering approach, the scattergraph approach,
and the high-low method.
6 Cost Estimation and Cost-Volume-Pro�itRelationships
Olga_Anourina/iStock/Thinkstock
8/21/2019 Print
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The objective of this study is to examine the effect of cost reduction techniques on profitability of manufacturing firms.
To achieve this objective, the study adopted survey design. Data were collected from the primary source. A total of
120 copies of questionnaire were administered out of which only 100were retrieved. The returned copies of
questionnaire were utilized in the data analysis of the study. Simple regression model was established and the
findings of the study indicate that there is a significant relationship between cost reduction techniques and
organizational profitability. The study concludes that the application of cost reduction techniques has improved
organizational profitability. Based on this, the study recommended that company should employ linear programming
(LP) techniques so that there would be timely purchase of raw material and component to meet production and sales
requirement. With the above recommendation, the company can achieve its goal of being ‘Low cost management’
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1. A STUDY ON COST ANALYSIS & CONTROL
(With reference to Hero Motocorp Pvt Ltd)
.
ABSTRACT
2. The total cost of producing a specific level of output is the cost of all the factors of input used.
Conventionally economist use models with two inputs capital, K. and labor, L. Capital is
assumed to be the fixed input meaning that the amount of capital used does not vary with the
level of production. The rental price per unit of capital is denoted r. Thus the total fixed costs
equal Kr. Labor is the variable input meaning that the amount of labor used varies with the level
of output. In fact in the short run the only way to vary output is by varying the amount of the
variable input. Labor is denoted L and the per unit cost or wage rate is denoted w so the total
variable costs is Lw. Consequently total cost is fixed costs (FC) plus variable cost (VC)
Valuation in terms of money of (1) effort, (2) material, (3) resources, (4) time and utilities
consumed, (5) risks incurred, and (6) opportunity forgone in production and delivery of a good
or service. All expenses are costs, but not all costs (such as those incurred in acquisition of an
income-generating asset) are expenses.
The profession places itself at the service of the nation, government, industry, and the society to
realize the objectives of a welfare state resulting in the prosperity and the well being of its people
- a fact increasingly realized with the opening up of the country's economy and change in the
economic scenario of the world. In today's world, the profession of conventional accounting and
auditing has taken a back seat and accountants increasingly contribute towards the management of
scarce resources like funds, land and apply strategic decisions. This has opened up further scope
and tremendous opportunities Cost and Works accountants to shoulder responsibility as Cost and
Management Accountants in accordance with new dimensions and vision here in India and abroad.
Members of this profession will be the driving force in the team of management while in
employment and a key consultant, an effective Cost and Management Auditor and an appropriate
advisor in place. This is why Cost Accountants in India are called Management Accountants all
over the world. It’s our other name. We invite you to browse through our web site. Complete
Information on our working, history and professional accreditation are all available.
3. INDEX
CHAPTER-1 PAGES
INTRODUCTION
Introduction about Project 01---03
Scope of the Study 04-----
Objectives of the Study 05-----
Methodology of the Study 06-----
CHAPTER-2
INDUSTRY PROFILE &COMPANY PROFILE
Automobile Industry in India 07-----
History of the Two Wheelers 08---12
Corporate Profile 13---18
Key Milestones of Hero Honda 19---24
Corporate Social Responsibility 25---28
Introduction about Phonix Dealer Profile 29---34
Customer Relationshiop 03---05
CHAPTER-3
REVIEW OF LITERATURE
Determination of Cost & Cost Control 37---45
Types Of Costs & Classifications 46---56
Review Of Project Costs 57---64
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
(Data Reporting by Tables) 65---81
CHAPTER-5
FINDINGS & CONCLUSIONS 83-----
SUGGESTIONS 84-----
BIBLIOGRAPHY 85-----
5. INTRODUCTION
COST:
Cost is essential in every walk of our life – national, domestic and Business. A cost is
prepared to have effective utilization of funds and for the realization of objective as efficiently as
possible. Costing is a powerful tool to the management for performing its functions i.e.,
formulation plans, coordination activities and controlling operations etc., efficiently. For efficient
and effective management planning and control are tow highly essential functions. Costing and
cost control provide a set of basic techniques for planning and control.
A cost fixes a target in terms of rupees or quantities against which the actual performance
is measured. A cost is closely related to both the management function as well as the accounting
function of an organization.
As the size of the organization increases, the need for costing is correspondingly more
because a cost is an effective tool of planning and control. Cost is helpful in coordinating the
various activities (such as production, sales, purchase etc) of the organization with result that all
the activities precede according to the objective. Costs are means of communication. Ideas of the
top management are given the practical shape. As the activities of various department heads are
coordinated at the much needed for the very success of an organization. Cost is necessary to future
to motivate the staff associated, to coordinate the activities of different departments and to control
the performance of various persons operating at different levels.
Costs may be divided into two basic classes. Capital and operating costs. Capital cost is
directed towards proposed expenditure for new projects and often require special financing.The
operating costs are directed towards achieving short-term operational goals of the organization for
instance, production or profit goals in a business firm. Operating costs may be sub-divided into
various departmental of functional costs.
6. DEFINITION OF'COST-BENEFITANALYSIS'
A process by which business` decisions are analyzed. The benefits of a given situation or
business-related action are summed and then the costs associated with taking that action are
subtracted. Some consultants or analysts also build the model to put a dollar value on intangible
items, such as the benefits and costs associated with living in a certain town. Most analysts will
also factor opportunity cost into such equations.
You may have been intensely creative in generating solutions to a problem, and rigorous
in your selection of the best one available. This solution may still not be worth implementing, as
you may invest a lot of time and money in solving a problem that is not worthy of this effort.
Cost Benefit Analysis or cba is a relatively simple and widely used technique for deciding
whether to make a change. As its name suggests, to use the technique simply add up the value of
the benefits of a course of action, and subtract the costs associated with it.
Costs are either one-off, or may be ongoing. Benefits are most often received over time.
We build this effect of time into our analysis by calculating a payback period. This is the time it
takes for the benefits of a change to repay its costs. Many companies look for payback over a
specified period of time – e.g. three years.
In its simple form, cost-benefit analysis is carried out using only financial costs and
financial benefits. For example, a simple cost/benefit analysis of a road scheme would measure
the cost of building the road, and subtract this from the economic benefit of improving transport
links. It would not measure either the cost of environmental damage or the benefit of quicker and
easier travel to work.
7. NEED OF THE STUDY:
The importance of cost reduction programs within a company cannot be overstated.
Companies that are losing money, need to increase profits, or must become more competitive need
to cut expenses in order to succeed. Knowing how to implement effective cost reduction strategies
can be the determining factor in the survival of a business.
When a company must generate more cash as fast as possible, management will have to
decide which costs can be most effectively reduced. If the reduction is needed quickly, expenses
cut first will normally be those that are not fixed or directly tied to production. It is not a good idea
to drastically reduce expenses that produce the company product or service without careful
evaluation.
If your company understands the importance of cost reduction as a tool to increase
profitability, the company will have a much better chance of remaining profitable no matter what
stage of the economic cycle is occurring. That is because cost reduction is an effective tool that
can be responsive to a company's need. Managing expenses is just as important as managing
revenue.
Keeping the competitive edge means keeping the company razor sharp. There is no room
for laxness which dulls the ability of a company to be responsive to market trends. Changes can
occur rapidly, and a company that cannot respond with new methods, new material usage, service
efficiency changes, or technological adaptability will be quickly outperformed by other businesses.
The importance of cost reduction strategies lies in its contribution to a company's honing of
performance.
SCOPE OF THE STUDY:
Since it will not be possible to conduct a micro level study of all type industries in Andhra
Pradesh, the study is restricted to Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.)
(Phoenix Motors Pvt. Ltd).only.
8. NEED OF THE STUDY:
THE STUDY HAS THE FOLLOWING:
To provide the material frame work of cost and Cost Control Analysis
To describe the profit of the organization as a backdrop for undertaking a study of
Cost Benefit Analysis.
To analyze the cost system in practice in Hero MotoCorp Ltd. (Formerly Hero
Honda Motors Ltd.) (Phoenix Motors Pvt. Ltd)with particular reference to their
objectives and phases of organizational and re-appropriation.
In addition to the analysis of the conventional cost system in practice in Hero
MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) (Phoenix Motors Pvt.
Ltd) The study aims at evaluation and modification to the current cost system with
reference to the various types of costs. The scope in the formulation of
performance cost is also studied.
SOURCES OF DATA:
The data of Hero MotoCorp Ltd have been collected mainly from secondary
sources
viz.,
Form the concerned officers of the Hero MotoCorp Ltd
Hero MotoCorp Ltd journals.
Accounting books, records.
Key books of concerned title.
Statistical records
Hero MotoCorp Ltd library.