You are on page 1of 22



Prepared for:
Dr. Siti Siraj Alawiah

Prepared by:
Rahmat O. Ashimi DL1421504
Suhaili Binti Nordin DL1215972
Masturah Samsuddin DL1521588
*Company Profile
Company Name :Balqis Textiles and Manufacturing
Sdn. Bhd.
Description :Manufacture textiles
Location :Rawang,Selangor
Category :SME
Contact no :+603-6034 4707
Fax :+603-6034 4706
Email :1)
Balqis Textiles can also be
contacted through media
*Corporate Structure
*Company Details
100% Bumiputra ownership known as regular and custom-
made clothing manufacturer.
In year 2013, SME Bank financed a loan of RM4.7 million in
for the establishment of Balqis Textiles.

This company initially specializes a variety of :

School uniform Traditional Women’s scarf Babies and
wears children
Sport wear T-shirt Garment
Cushion cover uniform Curtain

 and any kinds of textiles manufacturing.

*Cont…Company Details
Their experts are high qualified in various field with
hands-on experience on :
designing, material handling, cutting, sewing, quality
control and as well as packaging.

BTMSB has an excellent business relationship with their

suppliers, bankers, customers and investors, guarantee as a
One Stop Future Clothing Centre for a diverse range of
clothing line in textile industry.
*Customers of Balqis Textiles
* School Uniform
* Corporate * Tailoring
* Women Clothing * Embroidering /
* Men Clothing Beading / Diamante
* Industrial
* Hospitality * Material Supplies
* Healthcare * Product Design
* Kid’s wear
* Uniforms
* Delivery
* Curtains / Bed sheet

*Types of Products &

*Business Operation in
* Accounting Practice in Balqis Textiles
and Manufacturing Sdn. Bhd.

Evaluate Evaluation
Allocating Accounting
Key of Major
Service Cost
Activities Of Overheads for the cost
The within The Drivers
Cost of product
Company Company
 It shows that the products of Balqis Textile do not
consume manufacturing overhead on unit basis.

 Those activities which are performed by many resources

are not demanded in percentage to the total number of
units sold or produced.

 ABC cannot be presented as models of how spending and

expenses fluctuate in the short run.
* Problems
It was identified that full-time availability of main employees
(which was almost impossible) was a pre-requisite to
successful implementation.

Resistance from some employees was also seen during the

implementation. After identifying the correct cost, sales person
were not ready to sell the products at given prices.

Difficulties in the use of the ABC method were found to be

associated with a proper selection of key accounting personals
and continuous updating of the model (large time consuming
* Recommendation
Employing professionals in the field of accounting will be helpful
for those organizations that are trying to implement activity based
costing system in future.

Labour time shall be recorded more appropriately for example,

with the introduction of labour time ticket system.

The practice shows the Strengths and weakness, of a company, the

opportunity and threats company may face.

 It is recommended also that Balqis Textiles & Manufacturing Sdn.

Bhd. to practice the strategic management accounting because it
will provide comprehensive information about the present and
future prospect of the company that the costing system is not able
to figure out.