1. Visit any institution and report the Accounting system and Pricing decisions.

More
preferable, if the institution is manufacturing.

The organization is selected from Addis Ababa city & it is One of MIDROC INVESTMENT GROUP
manufacturing cluster in the name of AHFA Food processing Plant Located in Akaki Kality sub city.

Accounting system

 The company financial statements have been prepared in accordance with Full
International Financial Reporting Standard (IFRS) issued by the International Accounting
Standards Board (IASB).
 The financial statements are prepared under the historical cost basis. The preparation of
financial statements in conformity with IFRS for SMEs requires the use of certain critical
accounting estimates.
 The company Used double entry accounting system, it provides check and balances,
which prevent fraudulent activity and reduce errors.
A double entry system of accounting does require software to properly manage it.
Business owners should look online for software that is easy to understand (designed for
business owners, not for accountants) and one that provides instant access to a number of
reports, such as:
 Profit & Loss statement  Invoice summary
 General Ledger  Payment summary
 Chart of accounts  Expense reports
 Sales tax summary

 Property, plant and equipment are stated at cost less accumulated depreciation.
Depreciation is charged on pooling method. Depreciation of an asset begins when it is
available for use.
 Financial assets and financial liabilities are recognized when the Company becomes a
party to the contractual provisions of the instrument.
Pricing decisions

 The company pricing decisions is cost based pricing; - cost-based pricing is a pricing
method that is based on the cost of production, manufacturing, and distribution of a
product. Essentially, the price of a product is determined by adding a percentage of the
manufacturing costs to the selling price to make a profit.
Cost-based pricing is the practice of setting prices based on the cost of the goods or
services being sold. A profit percentage or fixed profit figure is added to the cost of an
item, which results in the price at which it will be sold.
 Advantage of cost based pricing
The only advantage of this method for this company is that it helps a business to be sure
that it will always make a profit, as long as the production figures are sufficient and the
unit sales meet the expectations, and it is an easy way to develop pricing.

Company costing system

 Process costing system; - In this costing system is used for manufacturing process which
produces a single product or single mix of products continuously for an extended period
of time. In this system the cost of a product or service is obtained by using broad
averages to assign cost to mass of similar unites produced for general sale and not for any
specific customers. Average cost over large number of nearly identical product
companies that use process costing system are as follow
 The company uses cost for their product pricing purpose and for preparation of their
financial statements. This pricing approach used to fix the desired profit percentage of the
company. The preparation of financial statements also used to know its net income and
net loss.
 The company costing system is computerized. This indicate computer systems are now
relied on for a broad spectrum of duties, including bookkeeping, business
communication, product design, manufacturing, inventory control and marketing.