UNDER GUIDANCE OF
DR. SRABONI DUTTA
PRESENTED BY:
RIYA TIWARI :MBA/10086/20
PRINCE KUMAR :MBA/10087/20
ANANYA JAISWAL :MBA/10088/20
BHARTI SHARMA :MBA/10089/20
SUPRIYA :MBA/10090/20
Essen
Nature
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RANCHI,
JHARKHAND- 835215
COST
ANALYSIS
PRESENTATION
COVER TOPICS
Essen
Nature
I. Description
II. Profile
III. Objective of business
IV. Organization Structure
V. Market
VI. Location
VII. Product
VIII.Process of making puffed rice
IX. SWOT analysis
X. Cost Accounting
AboutUs
3
Essen Nature pvt.Ltd. is retail and
wholesale puffed rice manufacturing
company. The plan of Essen is to maintain
the interest of our customers by providing
quality product.
• Essen Nature is incorporated in the state
of Jharkhand with the capital of 9,45,000
INR. We have 5 shareholders, Rs.
1,89,000/ each.
• Our company will be equally own and
manage by our 5 partners.
• These partners represent
sales/management and
finance/administration areas,
respectively. The partners will provide
funding from their own savings, which
will cover startup expenses and provide a
finance for the first three months of
operation.
ESSEN NATURE
Objectives of business
4
• There are many objective such as to contribution in the development of the
country, social responsibility, business profits etc.
ESSEN NATURE main objectives are
• To earn sufficient profit.
• To provide high quality products.
• To provide social facilities.
• Elimination of customer problems.
• Contribution in the development of the country.
ESSEN NATURE
PROFILE
5
 Name :- Essen Nature Pvt. Ltd.
 Area of Location :- Dhanbad, Jharkhand
 Contact No. :– 06542-259239
 partners :– Riya Tiwari
Prince Kumar
Ananya Jaiswal
Bharti Sharma
Supriya
 Size of unit :- Small scale sector
 Establishment year :– 2021
 Accounting year :- January to December
ESSEN NATURE
MARKET
• Increasing demand for healthy snack food in breakfast is
fuelling the market for puffed food. With the increase in
demand for muri, farmers are growing more rice to
meet the demands.
• Essen Nature wants to regulate a large customer base,
and will therefore concentrate its business and
marketing on local residents which will be the dominant
target market. This will establish a healthy, consistent
revenue base to ensure stability in the business.
6
ESSEN NATURE
LOCATION
• WE WILL ESTABLISH OUR PUFFED RICE
UNIT IN DHANBAD, JHARKHAND.
• DUE TO ITS FAVOURABLE AGRO-CLIMATIC
CONDITIONS AND RICH NATURAL
RESOURCES.
7
ESSEN
NATURE
PRODUCT
8
ESSEN NATURE
• Essen provides freshly, contamination
free, good colour, crisped & uniformly
puffing puffed rice.
• During the process grains of rice get
damaged due to heat and pressure, which
is known a broken rice and it will be
considered as our by-product.
PROCESSOF
MAKINGPUFFED
RICE
9
Grains conditioned and dried to 15-16%
moisture.
Charged into puffing guns.
Puffing Guns are typically pressure vessels.
Grains are charged to the gun through
gravity chute, other end is closed with a trip-
valve.
Due to heat provided, steam generated.
In 5-7 mins, temp reaches 500-800°F
Pressure developed is 100-200psi.
When pressure reaches predetermined level
end of the gun is suddenly opened.
Contents explodes to into a cage.
Strengths
1. Positive work
environment.
2. Labour welfare programs.
1. Limited investment.
Threats Weaknesses
SWOT ANALYSIS
10
Opportunities
1. Perfect competition prevailing in the
market.
2. New entrants.
1. Stable economy.
2. Good government norms (tax subsidy).
3. New scope to expand business through
online platforms.
ESSEN NATURE
COSTANALYSIS
11
Particulars Amount
Opening Stock of Raw Material
Add: Purchase of Raw Material 41,67,800
Less: Closing stock of Raw Materials 22,000
Raw Material Consumed 41,45,800
Direct Wages (Labour) 11,76,000
Bonus, incentives 38,000
Direct Charges (Carriage Inward) 9,600
ESSEN NATURE
12
ESSEN NATURE
1) Prime Cost 41,93,400
Add: Factory Over Heads:
Factory Rent 7,20,000
Factory Power 1,92,500
Indirect Wages Supervisor Salary 1,44,000
Bonus and incentive 15,000
Production In charge salary and supervisor salary 2,40,000
Factory Asset Depreciation 60,000
Work Cost incurred 55,49,900
Less: Closing Stock of WIP 16,000
13
ESSEN NATURE
2) Works Cost 55.33,900
Add: Administration Over Heads:
Miscellaneous Expenses 12,000
Repair & Maintenance 5,000
Depreciation (Furniture and Fixtures) 1,000
Accountant Salary 1,80,000
Bonus, incentives and overtime 12,000
Printing and Stationary 9,600
Telephone Charges 3,600
Insurance 10,000
14
3) Cost of Production 57,67,100
Less: Closing Stock of Finished Goods 2,74,287
4) Cost of Good Sold 54,92,813
Add: Selling and Distribution OH:
Sales man Salary 1,02,000
Bonus incentive 9,000
Travelling Expenses 48,000
Delivery man Expenses 72,000
Sales Expense 44,000
5) Cost of Sales 57,67,813
Profit (balancing figure) 46,09,495
Sales 1,03,77,308
ESSEN NATURE
THANKYOU
06542-259239
15
ESSEN NATURE
ESSEN NATURE PVT. LTD

Cost management

  • 1.
    UNDER GUIDANCE OF DR.SRABONI DUTTA PRESENTED BY: RIYA TIWARI :MBA/10086/20 PRINCE KUMAR :MBA/10087/20 ANANYA JAISWAL :MBA/10088/20 BHARTI SHARMA :MBA/10089/20 SUPRIYA :MBA/10090/20 Essen Nature BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RANCHI, JHARKHAND- 835215 COST ANALYSIS
  • 2.
    PRESENTATION COVER TOPICS Essen Nature I. Description II.Profile III. Objective of business IV. Organization Structure V. Market VI. Location VII. Product VIII.Process of making puffed rice IX. SWOT analysis X. Cost Accounting
  • 3.
    AboutUs 3 Essen Nature pvt.Ltd.is retail and wholesale puffed rice manufacturing company. The plan of Essen is to maintain the interest of our customers by providing quality product. • Essen Nature is incorporated in the state of Jharkhand with the capital of 9,45,000 INR. We have 5 shareholders, Rs. 1,89,000/ each. • Our company will be equally own and manage by our 5 partners. • These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover startup expenses and provide a finance for the first three months of operation. ESSEN NATURE
  • 4.
    Objectives of business 4 •There are many objective such as to contribution in the development of the country, social responsibility, business profits etc. ESSEN NATURE main objectives are • To earn sufficient profit. • To provide high quality products. • To provide social facilities. • Elimination of customer problems. • Contribution in the development of the country. ESSEN NATURE
  • 5.
    PROFILE 5  Name :-Essen Nature Pvt. Ltd.  Area of Location :- Dhanbad, Jharkhand  Contact No. :– 06542-259239  partners :– Riya Tiwari Prince Kumar Ananya Jaiswal Bharti Sharma Supriya  Size of unit :- Small scale sector  Establishment year :– 2021  Accounting year :- January to December ESSEN NATURE
  • 6.
    MARKET • Increasing demandfor healthy snack food in breakfast is fuelling the market for puffed food. With the increase in demand for muri, farmers are growing more rice to meet the demands. • Essen Nature wants to regulate a large customer base, and will therefore concentrate its business and marketing on local residents which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability in the business. 6 ESSEN NATURE
  • 7.
    LOCATION • WE WILLESTABLISH OUR PUFFED RICE UNIT IN DHANBAD, JHARKHAND. • DUE TO ITS FAVOURABLE AGRO-CLIMATIC CONDITIONS AND RICH NATURAL RESOURCES. 7 ESSEN NATURE
  • 8.
    PRODUCT 8 ESSEN NATURE • Essenprovides freshly, contamination free, good colour, crisped & uniformly puffing puffed rice. • During the process grains of rice get damaged due to heat and pressure, which is known a broken rice and it will be considered as our by-product.
  • 9.
    PROCESSOF MAKINGPUFFED RICE 9 Grains conditioned anddried to 15-16% moisture. Charged into puffing guns. Puffing Guns are typically pressure vessels. Grains are charged to the gun through gravity chute, other end is closed with a trip- valve. Due to heat provided, steam generated. In 5-7 mins, temp reaches 500-800°F Pressure developed is 100-200psi. When pressure reaches predetermined level end of the gun is suddenly opened. Contents explodes to into a cage.
  • 10.
    Strengths 1. Positive work environment. 2.Labour welfare programs. 1. Limited investment. Threats Weaknesses SWOT ANALYSIS 10 Opportunities 1. Perfect competition prevailing in the market. 2. New entrants. 1. Stable economy. 2. Good government norms (tax subsidy). 3. New scope to expand business through online platforms. ESSEN NATURE
  • 11.
    COSTANALYSIS 11 Particulars Amount Opening Stockof Raw Material Add: Purchase of Raw Material 41,67,800 Less: Closing stock of Raw Materials 22,000 Raw Material Consumed 41,45,800 Direct Wages (Labour) 11,76,000 Bonus, incentives 38,000 Direct Charges (Carriage Inward) 9,600 ESSEN NATURE
  • 12.
    12 ESSEN NATURE 1) PrimeCost 41,93,400 Add: Factory Over Heads: Factory Rent 7,20,000 Factory Power 1,92,500 Indirect Wages Supervisor Salary 1,44,000 Bonus and incentive 15,000 Production In charge salary and supervisor salary 2,40,000 Factory Asset Depreciation 60,000 Work Cost incurred 55,49,900 Less: Closing Stock of WIP 16,000
  • 13.
    13 ESSEN NATURE 2) WorksCost 55.33,900 Add: Administration Over Heads: Miscellaneous Expenses 12,000 Repair & Maintenance 5,000 Depreciation (Furniture and Fixtures) 1,000 Accountant Salary 1,80,000 Bonus, incentives and overtime 12,000 Printing and Stationary 9,600 Telephone Charges 3,600 Insurance 10,000
  • 14.
    14 3) Cost ofProduction 57,67,100 Less: Closing Stock of Finished Goods 2,74,287 4) Cost of Good Sold 54,92,813 Add: Selling and Distribution OH: Sales man Salary 1,02,000 Bonus incentive 9,000 Travelling Expenses 48,000 Delivery man Expenses 72,000 Sales Expense 44,000 5) Cost of Sales 57,67,813 Profit (balancing figure) 46,09,495 Sales 1,03,77,308 ESSEN NATURE
  • 15.