Name: Shalaka Vilas Phatak

Roll no: 170

Div: C

Q1) Collect the cost of the product from various sources.

1. Select any Company from the given area
a) Textile Industry
b) Manufacturing Industry
c) Retail sector
d) FMCG Sector

Ans. 1) FMCG Sector – Hindustan Unilever Ltd. (HUL)

(in crores)
WORKING TOTAL
PARTICULARS
COLUMN COST
     
DIRECT COST    
Direct Materials    
Opening stock of Material 9,036  
less: Closing stock of RM -12,667 21,703
Direct Wages   1,830
PRIME COST   23,533
     
INDIRECT COST    
Factory Overheads    
Power and Fuel 304  
Repairs of Machinery 150  
Depreciation on plant machinery and equipment (leased asset) 597  
Depreciation on plant machinery and equipment (owned asset) 390 1441
GROSS FACTOR COST   24,974
Add: opening stock of work in progress 254  
less: closing stock of work in progress -428 -174
WORK COST   24,800
     
Office and Administration Overheads    
Rent 101  
 Rates and Taxes 7  
tax audit fees 1  
others 2 111
COST OF PRODUCTION   24,911
add :opening stock of finished goods 1325  
less: closing stock of finished goods -1542 -217
COST OF GOODS SOLD   24,694
Selling and distribution Overheads    
Advertising 4,737  
Packing 2,284  
Travelling and motor car expenses 90  
Carriage and freight 1674 8,785
Total Cost   33,479
Profit   10,312
Sales   43,791

Q2.Explain environmental costing with practical examples.

Environmental costing is a way of accounting that identifies a project's or action's direct and
indirect economic, environmental, health, and social costs.
Environmental costing takes into account more than simply the project's fundamental direct
expenses, such as construction materials, production, and distribution. Indirect costs, like as
externalities, are included in environmental costing. Externalities are the consequences or
expenses of an activity that affect individuals who are not directly involved.
A coal-burning power plant, for example, will release greenhouse gases, which could result in
societal health costs. In addition, the noise generated by wind turbines may induce sleep
disruptions, anxiety, and stress in those who are sensitive to it. These indirect costs are
significant factors for a society to think about while making decisions.
Environmental costing may also take into account the economic and environmental costs of
utilising natural resources or implementing infrastructure upgrades. To support a project,
infrastructure modifications may involve the construction of additional roads or bridges.