Maharashtra State Board of Technical Education

Mumbai. (M.S.)

MICRO PROJECT On

“ Select Any Product And Prepare Its Cost Sheet ”

Submitted by 1

Roshni Katkar

G.S. Mandal’s

Department of Computer Engineering

Marathwada Institute of Technology,
Polytechnic, Aurangabad.

Academic Year: - 2022-2023

 MAHARASHTRA STATE
BOARD OF TECHNICAL EDUCATION

CERTIFICATE

This is to certify that : -

Roll Enrollment Exam
No. Name of Student No. Seat No.
95 Roshni Katkar 2000660287

Have successfully completed “ Select Any Product And Prepare Its Cost Sheet”
Micro-project for the subject Enterpreneurship Development as in the enclosed
‘Portfilio’ during his / her tenure of Completing the Diploma in Computer
Engineering (CO6I) in Academic Year 2019-2020 from M.I.T. Polytechnic,
Aurangabad with Institute Code 0066.

Date:

Prof.D.B.Bawiskar Prof. A.S.Nagrik

Guide H.O.D.

Principal
Marathwada Institute of Technology,
Polytechnic, Aurangabad
 INDEX

Annexure-IV Micro Project Teacher Evaluation Sheet

Annexure-I A “Format for Micro-Project Proposal”

1.0 Aim/Benefits of Micro Project (minimum 30-50 words)

2.0 Course Outcomes Addressed

3.0 Proposed Methodology (procedure in brief that will be followed to do the microproject
in about 100-200 words.)

4.0 Action Plan (Sequence and time required for major activity.)

5.0 Resources required (major resources such as row material, some machining facility,
software etc.)

Annexure-II A “Format for Micro-Project Report”

1.0 Rationale (Importance of the project, in about 30 to 50 words. This is a modified version
of the earlier one written after the work)

2.0 Aim/Benefits of Micro Project:

3.0 Course Outcomes Achieved (Add to the earlier list is more Cos are addressed)

4.0 Literature Review

5.0 Actual Methodology Followed (Write step wise work done, data collected and its
analysis (if any). The contribution of individual member may also be noted.)

6.0 Actual Resources Used (mention the actual resources used).

7.0 Outputs of the micro projects (Drawings of the prototype, drawing of survey,
presentation of collected data, findings etc.)

8.0 Skill Developed/Learning outcome of this micro project

9.0 Applications of this micro project

 Annexure-IV
Micro Project (Teacher Evaluation Sheet)
Name of Programme: Diploma in Computer Engineering Semester : - 6th

Course Title : Enterpreneurship Development Code: 22032

Title of Micro Project: “ Select Any Product And Prepare Its Cost Sheet ”

Course Outcomes Achieved:

a) Identify your entrepreneurial Traits.

b) Identify the business opportunities that suits you.

c) Use the support systems to zero down to your business idea.

d) Develop comprehensive business plans.

e) Prepare plans to manage enterprise effectively.

Process and Individual Total
Roll Name of Student Enrollment Exam Product Presentation Marks
No. No. Seat No. Assessment / Viva (10)
(06) (04)
95 Roshni Katkar 2000660287

Comments / Suggestions about work:

_________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Signature of Teacher :__________________________

Name and Designation :__________________________

 Annexure-I
Micro-Project Proposal
(Format for Micro-Project Proposal About 1-2 pages)

Title of Micro-Project : “ Select Any Product And Prepare Its Cost Sheet ”

1.0 Aim/Benefits of Micro Project (minimum 30-50 words)

1. To learn about cost & cost sheet.

2. Learned how to prepare a cost sheet of any product.
3. Stating some relevant information about common features
2.0 Course Outcomes Addressed

a. Identify your entrepreneurial Traits.

b. Identify the business opportunities that suits you.

c. Use the support systems to zero down to your business idea.

d. Develop comprehensive business plans.

e. Prepare plans to manage enterprise effectively.

3.0 Proposed Methodology (Procedure in brief that will be followed to do the micro-
project in about 100-200 words.)

1. Discussion about topic with guide and among group members

2. Submission of project proposal
3. Information collection
4. Analysis of Data
5. Compilation of the content
6. Representation
7. Editing and Revising the content
8. Report Preparation
4.0 Action Plan (Sequence and time required for major activity.)
Sr. Details of Activity Planned Planned Name of
No Start Date Finish Date Responsible
Team Members

1. Discussion and finalization of Roshni & Sujata

topic
2. Preparation and submission Roshni & Sujata
of
Project Proposal
3. Literature Review and collection Roshni & Sujata
of data
4. Compilation of Report Roshni & Sujata

5. Actual Presentation & Final Roshni & Sujata

submission of Micro Project

5.0 Resources required (major resources such as row material, some machining
facility, software etc.)
Sr. Name of Resource/Material Specification Qty. Remarks
No

1. Personal For editing 1

Computer/Laptop with
internet
facility.
2. Microsoft Word For editing 1
report &
inserting
information.

Names of Team Members with Roll No. : -

Roll No. Name of Student

71 Sujata Gaikwad

95 Roshni Katkar

Annexure-II
 Micro-Project Report
(Format for Micro-Project Report minimum 4 pages)

Title of Micro-Project : - : “ Select Any Product And Prepare Its Cost Sheet ”

1.0 Rationale (Importance of the project, in about 30 to 50 words. This is a modified

version of the earlier one written after the work)

A cost sheet is a statement prepared at periodical intervals of time, which

accumulates all the elements of the costs associated with a product or
production job. It is used to compile the margin earned on a product or job and
forms the basis for the setting of prices on similar products in the future.

2.0 Aim/Benefits of Micro Project:

1. To learn about cost & cost sheet.

2. Learned how to prepare a cost sheet of any product.
3. Stating some relevant information about common features

3.0 Course Outcomes Achieved (Add to the earlier list is more Cos are addressed)

a. Identify your entrepreneurial Traits.

b. Identify the business opportunities that suits you.

c. Use the support systems to zero down to your business idea.

d. Develop comprehensive business plans.

e. Prepare plans to manage enterprise effectively.

4.0 Literature Review : -

• Basic definitions:-
Cost:- Amount of expenditure incurred on a particular thing.
Costing:- It means the process of ascertainment of the costs.
Cost accounting:- It is broader than costing. Cost accounting can be defined as the
technique of recording, classification, allocation, reporting and control of cost.
Thus,
Cost Accounting = Costing + Cost reporting + Cost control
Elements wise classification of cost:-

The cost of production/manufacturing consists of various expenses incurred on the

production of goods or services. These are the elements of cost which can be
divided into three groups:

• Material,
• Labor
• Expenses
1. Material Cost

To produce or manufacture material is required. For example, to manufacture shirts

cloth is required and to produce flour wheat is required.

2. Labor Cost

Labor is the main factor of production. For the conversion of raw material into finished
goods, human resource is needed, and such human resource is termed as labor.

3. Expenses

All costs incurred in the production of finished goods other than material cost and labor
cost are termed as expenses.

What is cost sheet?

It is a statement which shows various components of total cost of product. It
classifies and analyses the components of cost of a product. Importance of
Cost Sheet:-

The importance of cost sheet is as follows:

• Cost ascertainment.
• Fixation of the selling price.
• Help in cost control.
 • Facilitates managerial decisions.

1. Cost ascertainment:-

The main objective of the cost sheet is to ascertain the cost of a product. The cost
sheet helps in the ascertainment of cost to determine cost after they are incurred. It
also helps to ascertain the actual cost or estimated cost of a Job.

2. Fixation of the selling price:-

To fix the selling price of a product or service, it is essential to prepare the cost
sheet. It helps in fixing the selling price of a product or service by providing detailed
information about the cost.

3. Help in cost control:-

For controlling the cost of a product, every manufacturing unit must prepare a cost
sheet. The estimated cost sheet helps in the control of material cost, labor cost, and
overheads cost at every point of production.

4. Facilitates managerial decisions:-

It helps in making important decisions by the management, such as: whether to

produce or buy a component, what prices of goods are to be quoted in the tender,
whether to retain or replace an existing machine, etc.

Major Elements of Cost Sheet / Elements of cost of manufacturing product:-

The major elements of a product are;

• Material,
• Labor, and  Factory overhead.

1. Material:-

To produce or manufacture material is required. For example, to manufacture shirts,

the cloth is required, and to produce flour, wheat is required.

Material is classified into two categories:

 • Direct Material.
• Indirect Material.

i. Direct material:-

Direct material is that material which can be easily identified and related to a
specific product, job, and process. For example, Timber is a raw material for making
furniture.

ii. Indirect material:-

Indirect material is that material that cannot be easily and conveniently identified
and related to a particular product, job, process, and activity. Consumable stores, oil,
and waste, printing and stationery, etc., are some examples of indirect material.

2. Labor:-

Labor is the main factor of production. For the conversion of raw material into
finished goods, human resource is needed, and such human resource is termed as
labor. Labor can be classified into two categories:

• Direct Labor
• Indirect Labor

a. Direct Labor:-

Labor, which takes an active and direct part in the production of a product, is called
direct labor. Direct labor is that labor can be easily identified and related to a
specific product, job, process, and activity.

b. Indirect Labor:-

Indirect labor is that labor which cannot be easily identified and related to a specific
product, job, process, and activity. It includes all labor not directly engaged in
converting raw material into a finished product. For example- Night security guards
salary.

3. Factory Overhead

Factory overhead includes all costs of manufacturing except direct materials and
direct labor, such as indirect material, indirect labor, heat, and light, property tax,
depreciation, etc

Functional classification of indirect overhead:-

a) Factory overhead:- The indirect expenses (overheads) incurred within the factory
area. Eg.:- Lubricants, oil, Work manager’s salary, factory rent, lightening. Etc.

b) Administration or office overheads:- The indirect expenses (OH) incurred within

the administrative area. Eg.:- Printing & Stationary, Accountant’s salary, Office rent,
Office insurance. Etc.

c) Selling & Distribution overheads:- The indirect expenses (OH) incurred in relation
to the sales activities for the distribution of the product or services. E.g. Packing
materials, printing & stationery, salesman’s salary, advertising, showroom rent,
logistics, manager salary bad debts. Etc.

Advantages of Cost Sheet:-

1. It indicates the break-up of the total cost by elements, i.e. material, labour,
overheads, etc.

2. It discloses the total cost and cost per unit of the units produced.

3. It facilitates comparison.

4. It helps the management in fixing selling prices.

It acts as a guide to the management and helps in formulating production policy
5. It enables to keep control over cost of production.

6. It helps the management in submitting quotations .

 Company Profile of Goobers Chocolate:
The name of company is Bluementhal Chocolate Company which introduced
GOOBERS in 1985 in India.
Initially, The Company was dealing in 2-3 types of spices and dry fruits only. But later
on it came up with up with an idea of chocolate peanuts with milk chocolate.
In the year 1992, the CEO of Blumenthal Chocolate Company thought about
increasing the profit of the company with some bigger margins and making the
company bigger then ever. In the year 1993 company had introduced the full variety
of chocolate like dark chocolate, chocolate enriched with dry fruits etc., and also he
started exporting them to neighboring countries. At that time Blumenthal Chocolate
Company was the only company who was there in Indian Market with full varieties
of dark chocolate, chocolate with dry fruits, wafer chocolate, bar chocolate etc.
In the year 1995, This Company got listed in NSE. Now, in the year 2009, after
reading the Indian booming food industry, The Company has decided to launch a
new Chocolate (only in Indian market) by the name of “GOOBERS”. This chocolate
is a unique in its category which is has peanuts coated in milk chocolate with butter,
caramels, dry fruits and honey in it. This chocolate is available in different packs of
15 grams, 35 grams, 65 grams and Jumbo pack of 125 grams. This chocolate is
especially launched in a way so that it suits the middle class pocket and even low
call of people as well. The Jumbo pack of this chocolate is the biggest chocolate
available in the Indian market.

SWOT Analysis:
Strengths:-

1. Almost 80,000 employees are working for the company.

2. The company is a respected employer that values its workforce.
3. It is cheap in comparison to other chocolates.
4. The company provides better quality of chocolate at competitive prices.
Weaknesses:-

1. Transportation and its costs giant because of the company’s size.

2. Production costs are high.
3. A lot of work just to keep the company running in an orderly and organized fashion
4. Quality of new products is automatically expected to be very good. It causes health
problems
Opportunites:-

1. Expansion into every country around the world.

2. Increase in control over their market segment.
3. Acquisition of more famous and well known brand names.
4. Expand product range in order to target multiple user groups. Production of sugar-
free chocolates

Threats:-

1. Increased international taxes on goods, especially beverages and confectionary

goods.

2. Rise of transportation prices.

3. Other companies such as Cadbury and Nestle who also strives for market
leadership.

4. Change in laws that inhibit production or sales in anyway.

  Analysis:
The company is producing 4,50,0000 units of chocolates at the rate of Rs. 16 for
which we are incurring the total cost of Rs. 72,00,000 and the total sales of Rs.
90,00,000 which implies that we are having the profit of Rs. 18,00,000.
The company is producing a single unit of chocolate at the rate of Rs. 20 which includes
the cost of chocolate as Rs. 16 which again implies that the profit of Rs. 4 is gained on
the single unit of chocolate.
Since the company is earning some percentage of profit above the cost it means
increasing cost can be the favorable condition for the company.

5.0 Actual Methodology Followed (Write step wise work done, data collected and its
analysis (if any). The contribution of individual member may also be noted.)

1. Discussion about topic with guide and among group members

2. Submission of project proposal
3. Information collection
4. Analysis of Data
5. Compilation of the content
6. Representation
7. Editing and Revising the content
8. Report Preparation

6.0 Actual Resources Used (mention the actual resources used).

Sr. Name of Resource/Material Specification Qty. Remarks

No
1. Online Free 1
open
learning
sources
2. Computer Microsoft 1
word
document with
internet facility
 3. Printer Printout 1

7.0 Outputs of the micro projects (Drawings of the prototype, drawing of survey,
Presentation of collected data, findings etc.)

Cost sheet of Chocolate Company

Particulars Cost Per Unit Total Cost

Raw Material
s
Sugar = 3,00,000
Cocoa
Butter =
3,20,000 23,20,000
Cocoa 5.16
Solid =
2,00,000
Peanuts
=
2,00,000
Milk
Solids =
2,00,000
Chocolate Coated
Rasins =4,00,000
Almonds =
3,00,000
Vanillin = 1,00,000
Honey = 50,000
Boston Baked Bean = 1,50,000

Direct Labour = 7,00,000 1.56 7,00,000

Carriage On Material = 2,42,000 0.53 2,42,500

Prime Cost:- 7.25 36,62,500

Factory Expenses:-
Fixed-
Depreciation On Planet
And Machinery =
2,57,500 2.35 10,57,000
Rent = 1,50,000
Power And Consumable
Stores = 1,50,000 Factory
Insurance = 1,50,000
Supervisor Salary = 50,000
Variable-

Electricity Charges = 50,000

Power And Consumable Stores =

1,00,000 Running Expenses Of

Machine = 1,50,000

Factory Cost:- 9.60 43,20,000

Office And Administration

Expenses
Office Staff 4.40 19,80,000
Salary =
10,00,000 Rent
= 80,000
Computer = 1,20,000
Furniture = 3,00,000
Telephone
= 10,0000
Carriage
Outward =
20,000
Depreciation On Furniture =

50,00014.00 Salaries To

Administrative = 3,70,0002.00 Rent,

Rates And Taxes = 30,00016.00

Office And Administration 14.00 63,00,00

Cost:-4.00
 Selling & Distribution
Expenses20.00
Advertisement (Print And By
Local T.V. Channels)
=4,00,0000
2.00 9,00,000
Petrol = 1,00,000
Delivery Vehicles = 2,50,200
Maintenance And Delivery
Vehicle = 49,800 Packaging
Rates = 50,000
Bad Debt Written Off = 1,00,000

Total Cost 16.00 72,00,000

Net Profit ( 20% On 4.00 18,00,000

Selling Prices)
Sales 20.00 90,00,000

8.0 Skill Developed/Learning outcome of this micro project

The following skills were developed while performing and developing this
micro-project
1. Designing: Designing of micro-project with minimum required resources
and at low cost.
2. Team work: Learned to work in a team and boost individual confidence.
3. Time Management: Timely completion of micro-project as scheduled.
4. Data Analysis: Interpretation of data: drawing and analysis of graphs,
laboratory calculations, etc.
5. Problem-solving: Develop good problem-solving habits.
Technical writing: Preparing a report of the proposed plan and final report

9.0 Applications of this micro project : -

The main objective of the cost sheet is to ascertain the cost of a product.
The cost sheet helps in the ascertainment of cost to determine cost after
they are incurred. It also helps to ascertain the actual cost or estimated cost
of a Job.
********