COSTING PLANNING AND MANAGEMENT

Costing and planning management is the process of planning and controlling

the budget of a business. Cost management is a form of management
accounting that allows a business to predict impending expenditures to help
reduce the chance of going over budget

Management of cost related activities achieved by collecting, analyzing,

evaluating, and reporting cost information used for budgeting, estimating and
forecasting

There are 4 costs under this project :

1. Cost of materials

2. Cost of packing & wrapping

3. Selling price

4. Estimated profit

COST OF MATERIALS

MATERIAL DESCRIPTIO UNIT PRICE

N
RAIN DETECTOR SMALL SIZE RM35/UNIT
DC GEARBOX MOTOR METAL RM 45/ UNIT
ROLLOUT AWNING THICK AND RM120/UNIT
PVC COATED
RETRACTABLE DRYING RACK STANLESS RM110/UNIT
CLOTH HANGER STEEL
HARD PLASTIC COVER FOR HARD RM20/UNIT
RAIN DETECTOR AND DC PLASTIC
GEARBOX MOTOR
TOTAL PROJECT COST RM 330
COST OF PACKING AND WRAPPING

For packaging, We decided to use a method where the products will be put
inside a medium size box with corks and we will wrap it nicely so that it will be
in a good condition. The total price for packaging is RM15

SELLING PRICE

As stated in section 2, the cost of producing a product costs RM330. Also, the
cost of packing is RM15. This means the total amount is RM345.

MATERIAL COST RM330 + PACKAGING COST RM15 = RM345

ESTIMATED PROFIT

Based on the analysis of material cost and packaging cost. We has set the
sale price to be set at the RM460 price tag. This mean that we will get the
profit for RM115 each item.