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 companys 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 1 100000
Quantity sold 1 100000
CPU(Rs)
DIRECT COST
Raw materials consumed
Opening stock of raw materials 0
Purchases of Raw Materials 5.805
(-)Closing stock of Raw Materials 0
Materials Consumed 5.805
Direct labour/wages 0.124
Direct cost/expenses 0.2415
PRIME COST 6.1705
INDIRECT COST
Indirect labour 0.122
Depreciation on Machinery 0.675
Works Overheads 0.05204
Cost of Maintanence 0.0589
Other Factory Expenses 0.0282
Supervisors Salary 0.0385
Power & Fuel 0.5678
Total Overheads 1.54244
FACTORY COST/WORKS
COST 7.71294
Office and Administrative
Overheads
Depreciation on office
furniture@7% 0.0281
Office Rent 0.0585
Salary to Staff 0.089
Office and General Expenses 0.0257
Telephone expenses 0.0219
Electricity and Lightings 0.03123
Printing and stationary 0.00294
Total Office and
Administrative Overheads 0.25737
COST OF GOODS SOLD 7.97031
Selling and Administrative
Overheads
Sales Commission 0.705
Salary of Salesman 0.1
Carriage Outward 0.12798
Sales Expenses 0.057
Total Selling and
Administrative Overheads 0.98998
COST OF SALES 8.96029
PROFITS 1.03971
SALES 10
RAW MATERIALS
Raw Materials Cost
Flour 3.756
Water 0.892
Yeast 0.6789
Salt 0.4781
Raw Materials per unit 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 1 100000
Quantity sold 1 100000
CPU(Rs)
DIRECT COST
Opening stock of raw materials 0
Purchases of Raw Materials 5.100
(-)Closing stock of Raw Materials 0
Materials Consumed 5.100
Direct labour/wages 0.124
Direct cost/expenses 0.2415
PRIME COST 5.4515
INDIRECT COST
Indirect labour 0.110
Depreciation on Machinery 0.600
Works Overheads 0.05204
Cost of Maintanence 0.00480
Other Factory Expenses 0.0280
Supervisors Salary 0.0385
Power & Fuel 0.3000
Total Overheads 1.17654
FACTORY COST/WORKS
COST 6.62804
Office and Administrative
Overheads
Depreciation on office
furniture@7% 0.0281
Office Rent 0.0585
Salary to Staff 0.089
Office and General Expenses 0.0257
Telephone expenses 0.0219
Electricity and Lightings 0.03123
Printing and stationary 0.00294
Total Office and
Administrative Overheads 0.25737
COST OF GOODS SOLD 7.97031
Selling and Administrative
Overheads
Sales Commission 0.705
Salary of Salesman 0.1
Carriage Outward 0.10347
Sales Expenses 0.057
Total Selling and
Administrative Overheads 0.96547
COST OF SALES 7.81528
PROFITS 1.18472
SALES 9
RAW MATERIALS
Raw Materials Cost
Flour 3.756
Water 0.892
Yeast 0.600
Salt 0.4781
Raw Materials per unit 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.
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.

Wheatflouradding of yeast,water,saltbread


DIRECT COSTS
Thank you.