2. 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 efficiency as possible. Costing is a
powerful tool to the management for the performing its
function i.e., formulation plans, coordination activities
and controlling operations etc., efficiency. For efficient
and effective management planning and control are low
highly essential functions. Costing and cost control
provide a set of basic techniques for planning and control
3. Cost-Benefit Analysis
A process by which business decisions
are analysed. The benefits of a given situation or
business- related action are summed and then
the process associated with taking that action
are subtracted. Some consultants o analysis 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
analysis will also factor opportunity cost into
such equations.
4. NEED FOR STUDY
The importance of cost reduction
programs within a company cannot be
overstated .companies that are losing money.
Need to increase profits. Or must be become
more competitive need to cut expense in order
to success knowing how to implement effective
cost deduction strategies can be the
determining factor in the survivor of a business.
When a company must generate more cash as
first as possible.
5. SCOPE OF THE STUDY
Sense it will not be possible to conduct a
micro level study of all types industries in
Andhra Pradesh, the study is restricted to Hero
Motocorp Ltd. (Formerly Hero Honda motors
Ltd.)(Phoenix Motors Pvt. Ltd). Only.
6. OBJECTIVE OF STUDY
• 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 Costy Benefit
Analysis.
• To analyze the cost system in practice in Hero
Motocorp Ltd. (Formerly Hero Honda motors
Ltd.)(Phoenix Motors Pvt. Ltd)with particular
references to their objectives and phases of
organizational and re-appropriation.
7. METHODOLOGY
PRIMARY DATA:
The primary data is collected by interacting
with the finance manager and other concerned
executive at the administrative office of the
company.
SECONDARY DATA:
All the secondary data used for the study has
been extracted from the annual reports, manuals
and other published material of the company
8. REVIEW OF LITERATURE
The management is efficient if it is able to accomplish
the objective of the enterprise. It is effective when it
accomplish the objectives with minimum effort and cost in
order to attain long-range efficiency and effectiveness
management must chat out its course in advance. A system
approach to facilitate effective management performance is
profit planning and control or costing. Costing is therefore an
integral part of management in a way, a cost control system
has been described as a historical combination of a gaol
setting machine for increasing an enterprises profit and a goal
achiveing machine for facilitating organization co ordination
and planning while achieving they coasted targets.
9. COST PERIOD
A cost period is the length of time for which
a cost is prepared. It depend upon a number of
factors. The choice of a cost period depends
upon the following considerations. The types of
cost.
. The nature of demand for the products.
. The timings for the availability of the
finance
. The economic situations of the cycles.
