Report By- Sheikh Nafiz Ahmed, Production Officer For period: 06.06.2011- 06.06.

2011

Copies To: 1. Costing & efficiency department 2. Head of Human Resources 3. Wellington Book 4. File

Reference Ckeck

ACTION

TEXT

Introduction to costing and efficiency department

Costing and efficiency department is responsible for all kinds of costing related issue of the shoes and makes the highest use of manpower. The department is also responsible for the highest use of material consumption and performs the costing of the shoes effectively and efficiently.

Costing and Efficiency Department

Costing CONCEPT OF BSO COSTING: Cost is a fact and price is a policy. OBJECTIVE OF COSTING : Price fixation (Up to standard cost).

Efficiency

Standard cost = Labor cost (wages + DLB) + Material cost + overhead. It is without administrative cost. FUNCTION OF COSTING & EFFICIENCY DEPARTMENT: Prepare prescription for production department. Determination of standard cost/Production cost by calculating materials, labor & over head. Follow up reglet price provided by Purchase department. Calculate factory turnover. Minimize cost of production and maximize profit.

TOTAL PRODUCTION COST:

Standard cost Standard cost

Material cost Material cost (Upper, Bottom, Sundise, (Upper, Bottom, Sundise, Packing) Packing)

Labour Cost Labour Cost (Wages, DLB) (Wages, DLB)

Overhead Overhead