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SPINDLE COST BUDGETING
FOR FULL PROJECT PURCHASE CONTACT : MUTHUKUMARAN – 9994109815, 8925850892
MBA PROJECT BOYZ
Budgeting for a company is as important as its operation strategy since it involves a huge amount of funds to be allocated for various resources for successful functioning of the company. Therefore, it becomes necessary for a company to carefully allocate sufficient funds for its operations. Patspin India Ltd follows activity-based costing where the cost is fixed based on the activity that is performed on a fabric in the process of spinning. Framing a production budget estimate for the company will greatly help the management in allocating sufficient funds for effectively performing the production operations. This is a critical task since they amount of money involved is huge and those should be allocated to the internal and external factors in a well-organized manner such that the operating costs can be reduced as much as possible. This project, A study on Spindle Cost Budgeting has been done as a budget estimate for the forthcoming fiscal year for Patspin India Ltd. It has been formulated with the previous financial year‟s cost sheet as the base. A growth rate of 15 percent has been projected in order to identify resources and capital needs, thereby avoiding risks. Projections have been made such that an idea about the output of the spinning mill produced can be known and resources can be efficiently allotted and utilized for the proficient performance of the company. With this pace, the management can ably make decisions to increase productivity, decrease the operations cost thus having a first-rate profit. The primary objective is to frame a budget estimate of the cost sheet of the company for the forthcoming financial year and the secondary objective is to study the cost sheet of the previous years to know the various elements that influence the cost sheet. Analytical research design has been used to analyse the secondary data, which was taken from the company reports. A simple Analytical research design is used when data are collected from books, Annual reports, Journals. analytical research, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material. The data was collected from the secondary sources.
Tools Used For Data Analysis Cost Budget Comparative Analysis
Nowadays the spinning mills are suffering due to high spindle cost and post spinning cost. But patspin India Ltd has stabilized its Cost per spindle in order to hold the price benefit. In Future the price will be gradually minimized. The company has been aiming to achieve a target
MBA PROJECT BOYZ
higher than the previous year‟s turnover and that this estimate has been framed to be in line with it. With this budget estimate, the company can effectively distribute its resources in the best possible way so that costs can be reduced to the minimum and good profit margin can be experienced.