COST ACCOUNTING PROJECT

presented by, Payal Thakur Yishaan Patel Nisha Seth Kushal Sindhwani Nirali Parekh Kunal Sakariya

WHAT IS COST SHEET
‡ A statement indicating the aggregate of all the costs is known as cost sheet. ‡ The cost sheet starts with all the items of direct cost to which the indirect costs are added starting from factory costs, then administration costs and then the selling and distribution costs. ‡ Financial expenses are not a part of cost sheet

INTRODUCTION TO BRITANNIA
‡
Till 1958,there were no breads in the organized sector and bread consumption was a habit typified by the British. Then, a mechanized bread unit was set up in Delhi with the name "Delbis" which produced sliced bread and packed it under the Britannia name. Thus, Britannia was not only the pioneer, but also inculcated in the people of Delhi the habit of eating white sliced bread. ‡ The Mumbai unit came up in 1963, and there again Britannia was the first branded bread in the city. From a company offering 2 packs - the 400gm and the 800gm plain white sliced bread - Britannia has evolved into a company offering 22 packs, catering to a variety of taste and price segments in the bread consuming market. The last couple of years also saw the introduction of Whole Wheat Bread as a part of "Eat Healthy, Think Better" credo. ‡ Britannia Daily Fresh Bread, which finds its way to over 6 lakh households daily, is the mainstay of the company·s non-biscuit business at present. Britannia hopes to drive this emerging business through the exploding modern trade and has already gained access to Reliance Retail, Trinethra and Fabmall for its breads. Britannia is widely recognized innovative marketer

COST SHEET OF BRITANNIA
PROFORMA OF COST SHEET Cost sheet for every 1lac units produced and sold. Cost Per Unit Quantity Manufactured Quantity sold 1 1 100000 100000

‡

CPU(Rs) DIRECT COST Raw materials consumed Opening stock of raw materials Purchases of Raw Materials (-)Closing stock of Raw Materials Materials Consumed Direct labour/wages Direct cost/expenses PRIME COST 0 5.805 0 5.805 0.124 0.2415 6.1705

INDIRECT COST Indirect labour Depreciation on Machinery Works Overheads Cost of Maintanence Other Factory Expenses Supervisors Salary Power & Fuel Total Overheads FACTORY COST/WORKS COST 0.122 0.675 0.05204 0.0589 0.0282 0.0385 0.5678 1.54244

7.71294

Office and Administrative Overheads Depreciation on office furniture@7% Office Rent Salary to Staff Office and General Expenses Telephone expenses Electricity and Lightings Printing and stationary Total Office and Administrative Overheads COST OF GOODS SOLD

0.0281 0.0585 0.089 0.0257 0.0219 0.03123 0.00294 0.25737 7.97031

Selling and Administrative Overheads Sales Commission Salary of Salesman Carriage Outward Sales Expenses Total Selling and Administrative Overheads COST OF SALES PROFITS SALES 0.705 0.1 0.12798 0.057 0.98998

8.96029 1.03971 10

RAW MATERIALS
Raw Materials Cost Flour Water Yeast Salt Raw Materials per unit 3.756 0.892 0.6789 0.4781 5.805

INTRODUCTION TO YUMMY BREAD 
Our bread ¶YUMMY BREAD· is new in the market and we have come up with bread and its varieties namely whole meal, multigrain and kibbled, rye and fruit breads.  Our co. has brought in the latest techniques and the best quality machines that makes our product better than our competitors product.  Our biggest competitor is Britannia but still we are a promising company as we provide people with a great variety of bread and that too at a lower price.

COST SHEET OF YUMMY BREAD
PROFORMA OF COST SHEET
Cost sheet for every 1lac units produced and sold. Cost Per Unit Quantity Manufactured Quantity sold 1 1 100000 100000

CPU(Rs) DIRECT COST Opening stock of raw materials Purchases of Raw Materials (-)Closing stock of Raw Materials Materials Consumed Direct labour/wages Direct cost/expenses PRIME COST 0 5.100 0 5.100 0.124 0.2415 5.4515

INDIRECT COST Indirect labour Depreciation on Machinery Works Overheads Cost of Maintanence Other Factory Expenses Supervisors Salary Power & Fuel Total Overheads FACTORY COST/WORKS COST 0.110 0.600 0.05204 0.00480 0.0280 0.0385 0.3000 1.17654

6.62804

Office and Administrative Overheads Depreciation on office furniture@7% Office Rent Salary to Staff Office and General Expenses Telephone expenses Electricity and Lightings Printing and stationary Total Office and Administrative Overheads COST OF GOODS SOLD

0.0281 0.0585 0.089 0.0257 0.0219 0.03123 0.00294 0.25737

7.97031

Selling and Administrative Overheads Sales Commission Salary of Salesman Carriage Outward Sales Expenses Total Selling and Administrative Overheads COST OF SALES PROFITS SALES 0.705 0.1 0.10347 0.057 0.96547

7.81528 1.18472 9

RAW MATERIALS
Raw Materials Cost

Flour Water Yeast Salt Raw Materials per unit

3.756 0.892 0.600 0.4781 5.100

SALIENT FEATURES 
It is an excellent source of dietary fibre, containing twice that of ordinary bread and more than multigrain bread.  Heavy breads are characterized by small volumes, dense texture and a high grain content.  It is a whole meal bread made from rye or a mix of rye and wheat flour.  Light multigrain have openness similar to white bread, with small kibbled grains, oats or other wheat mixed through bread.

POWER COST 
Our co. daily bread councils for energy efficient LED bulbs, motion sensors.  The govt of Punjab gives concession for the usage of SOLAR PANELS.  LED(Light-emitting diode) lights use half the energy of fluorescent ones. They last for longer time for about 10 years.  In this way, each block saves Rs.18,000.

ADVERTISEMENT COST 
Get such Brand ambassadors who charge less but are still popular with the public. eg: popular television actors; popular kids on T.V  Advertisement on hoardings, buses etc rather than TVs, in shops and near all schools and grocery stores, near sandwich wallas etc.  Adding pamphlets to the shopping bags in malls on weekends or the special discount days.  Publicity of the softness of the bread and the breads multi grain and health benefits.  The board and employees spread the word on it due to which they are given an incentive.

TRANSPORTATION COST
‡ Low cost for transportation of raw materials due to nearby wheat fields etc. ‡ Own transport vans for efficient delivery to suppliers and directly to consumers too on receiving orders. ‡ Dealing with Customers in the vicinity of North India and so no distant transport costs.

EMPLOYEES COST
‡ Our company uses the scalar chain method to communicate between the employees and the management. ‡ We use lesser employees and are more technology friendly thereby reducing the per day wages. ‡ Proper flow of information from the top level to the lower level and vice versa, thereby avoiding any miscommunications.

DIRECT COSTS 
Reduction of labour turnover and idle time helps us to control labour cost.  Britannia imports wheat from Australia but we have our own farms where we cultivate wheat of the best quality(Punjab)  We locate our manufacturing units in the areas where labour is available in plenty and thereby cheaper.  Modern machines are used where the processing of wheat into bread is done without employing lot of labour.  Wheat flour adding of yeast,water,salt bread

THANK YOU.