A Project Report On

“Cost Sheet”

Submitted in partial fulfilment of the requirement for the award of

POST GRADUATE DIPLOMA IN

MANAGEMENT
From
NARAYANA BUSINESS SCHOOL, AHMEDABAD

Subject : MANAGERIAL ACCOUNTING

Component : CEC-2 Cost Assignment
Submitted By
NAME: SHIVAM TRIPATHI
BATCH: PGDM QF 2023-25
ROLL NO.: ten
DATE.: 9/10/23

Under The Guidance Of

NAME: Prof. Devesh Desai
DESIGNATION: Assistant Professor
DEPARTMENT: Accounts and Finance
OPERATING COST SHEET OF KRIPAL HOMES (PG) FOR THE MONTH
SEPTEMBER 2023
NOTE AMOUNT AMOUNT
SR.NO PARTICULARS NO (RS) (RS)two
1 FIXED COST
RENT / PROPERTY LEASE ₹1,20,000.00
UTILITIES (ELECTRICITY, WATER, GAS) ₹4,00,000.00
INSURANCE (PROPERTY AND LIABILITY) 1 ₹25,000.00
SALARIES AND WAGES
MANAGERS 2 ₹2,45,000.00
HOUSEKEEPING STAFF 3 ₹2,00,000.00
SECURITY AGENCY 4 ₹25,000.00
PROPETY MAINTENANCE ₹50,000.00
PROPETY TAXES ₹70,000.00
MARKETING (COMMISSION 1%) ₹70,000.00
LICENSES AND PERMITS ₹10,000.00
ACCOUNTING AND LEGAL FEES ₹30,000.00
COMMON AREA MAINTENANCE ₹5,000.00
INTERNET AND CABLE TV ₹40,000.00
TOTAL FIXED COST ₹12,90,000.00
2 VARIABLE COST
HOUSEKEEPING AND CLEANING SUPPLIES ₹25,000.00
REPAIR AND MAINTENANCE (EX-PLUMBING) ₹30,000.00
PEST CONTROL ₹20,000.00
FOOD AND GROCERIES ₹1,40,000.00
LAUNDRY SERVICES ₹35,000.00
GUEST AMENITIES ₹20,000.00
MISCELLANEOUS EXPENSES ₹1,00,000.00
TOTAL VARIABLE COST ₹3,70,000.00

TOTAL OPERATING COST (FIXED +

3
VARIABLE) ₹16,60,000.00

4 TOTAL INCOME
MONTHLY RENT (400 PEOPLE AT RS. 15000) ₹60,00,000.00
NET INCOME (INCOME- TOTAL OPERATING COST) ₹43,40,000.00
 PER UNIT COST (TOTAL OPERATING
COST / NO OF TENANTS 4,150

WORKING NOTES
INSURANCE IS 3,00,000 @ 25000 FOR 12
1 MONTHS)
MANGER SALARY 2,45,000 @35000 FOR 7
2 MANAGERS
HOUSEKEEPING STAFF 2,00,000 @ twenty thousand
3 FOR 10 MEMBERS
SECURITY AGENCY 25000 @ 12500 FOR 2
4 GUARDS
EXPLANATION

(ANY ASSUMPTION OR ESTIMATES MADE)

• Monthly Room Rent (₹15,000 per person): This figure assumes that each guest pays an
average monthly rent of ₹15,000. The actual rent may vary based on factors such as
room type, amenities, location, and competition in the area. It is crucial to set
competitive rental rates and adjust them as needed.

• Marketing (Commission): The marketing expense is estimated at ₹70,000 in this cost

sheet. The actual marketing budget may vary depending on your marketing strategy and
goals. It is important to allocate resources effectively to attract and retain guests.

• Food And Groceries: The food and groceries expense are estimated at Rs. 1,40,000 in
this cost sheet which can be differentiated as the price of food and groceries may change
over time.