Posted on 17th Oct 2024 10:10:13 AM Accounting and Information Systems
1.1 Introduction
Cost accounting provides information to managers in making decisions. The study of cost accounting yields insights into what managers and accounts do in an organization.
This report focuses on the prevailing methods of cost accounting practices in “Sopura Silk Mills Ltd.” Sopura Silk Mills Ltd. is a well-known factory in silk industry of Bangladesh. The company practices cost accounting since the inception of its business. At present it has many products such as silk yarns, sharee, punjabi, shirt, women’s product etc. It is a manufacturing concern so cost accounting system is largely practised here.
Cost accounting is the accounting system which is related to the ‘cost of production’ or cost of services. The major functions are cost ascertain, cost control, analysis and to help the managers in decision making process by providing information.
The report contains the practices of above system in Sopura Silk Mills Ltd.
1.2 Objectives of the study
The objectives of the study can be summarized as follows:
1. To present a brief historical review of Sopura Silk Mills Ltd.
2. To highlight the various costs centers.
3. To present the Five years “Cost Statement” and the methods of costing.
4. To analyze the productivity.
5. To highlight the cost control and cost reduction methods.
6. To highlight the methods of ascertaining cost.
7. To identify the various elements of costs.
8. To highlight the method of cost Audit.
9. To review the overall costing methods.
10. To comment on overall activities.
11. To identify problems and give recommendations.
1.3 Methodology of study
There are various methods of conducting studies such as library work, questionnaire, interview, and observation method etc. In order to obtain information for analyzing the cost accounting system, the following methods are applied.
A. Primary data collection method: Both Primary and secondary data are used for this study. For collecting primary data, observation, interview and survey methods have been applied. For this purpose questionnaire was formulated in the light of the objectives of the research.
B. Secondary data collection method: Secondary data are collected from annual report, official papers, Government publications, relevant book, journals, booklets etc. of the Silk companies relevant to this method.
C. Personal interview and observation: I have taken personal interview of various employees working in several section or department of the company. I also observed the whole production function of the mills.
The collected data are tabulated, analyzed and interpreted with the help of the direction of the company and various statistical tolls e.g. average, percentage etc. are used.
1.4 Scope of the study
Sopura Silk Mills Ltd. is a private Ltd. company and market leader in the silk industry. It’s 90% market is domestic and the rest are foreign. The main reason for selecting Sopura Silk Mills Ltd. was the easy access to availability of the requisite data and information. My research problem is the “cost accounting practices in Sopura Silk Mills Ltd.” is appropriate for its large manufacturing process. The study covers a period of five years cost data from 2001-02 to 2005-06.
1.5 Time schedule
To prepare the study, I had to spend fifteen days. The time distributions of the study are given below:
Activities | Days |
Introducing with company directors, manager, officials, visiting various production sectors, dyeing, weaving, printing, finishing sectors and collect data through questionnaire. | 7 |
Officials data collection through observing various papers, invoices, documents etc. | 2 |
Data collection from Dhaka office & Showroom, Dhanmondi, Gulshan, Santinagar etc. | 2 |
Data collection from Rajshahi City Show Room | 1 |
The data of various branches are collected from the head office. (branches are Chittagong, Mymenshingh and England) | 1 |
Contact with honorable supervisor, analysis the data, draft the report and finalize the report. | 2 |
Total | 15 |
1.6 Limitation of the study
During the preparation of my report I have faced many problems which are the limitation of the study. The limitations of this study are as follows:
1. I have to complete this report within a short period of time which was not sufficient for this internship program.
2. It was not possible to collect various data, books, and journals of the company as they were not readily available.
3. All collected data were not possible to apply in this report due to time constraints which could have made the study informative.
4. Another problem is that the appropriate cost accounting system is not maintained in compliance with theoretical aspects.
CONTENTS
Preface
Acknowledgement
CHAPTER ONE
1.1 Introduction
1.2 Objectives of the study
1.3 Methodology of study
1.4 Scope of the study
1.5 Time schedule
1.6 Limitation of the study
CHAPTER TWO
2.1 A brief historical review of Sopura Silk Mills Ltd.
2.2 Background of cost accounting practices in Sopura Silk Mills Ltd
CHAPTER THREE
3.1 Cost Account
3.2 Objective of cost Accounting
3.3 Cost Accounting Cycle
3.4 Classifications of costs
CHAPTER FOUR
4.1 Methods of ascertaining cost
4.2 Method of cost accounting
4.3 Various cost centers of the company
4.4 Elements of cost of Sopura Silk Mills Ltd.
4.5 Procurement policy of Sopura Silk Mills Ltd.
4.6 Depreciation charged by the company
CHAPTER FIVE
5.1 Five years consecutive statement of cost of Sopura Silk Mills Ltd.
5.2 Analysis of cost data
CHAPTER SIX
6.1 Measurement of productivity
6.2 Prevailing methods of cost control and cost return
6.3 Cost audit system of the company
CHAPTER SEVEN
7.1 Overall comments on cost accounting systems
7.2 Problems & Recommendations
7.3 Bibliography
7.4 Appendix
Internship, Report, Cost, Accounting, Practices, Sopura, Silk, Mills, Limited, Rajshahi, City, Show, Room, Factory, Industry, Bangladesh, Yarns, Sharee, Punjabi, Shirt, Women’s, Product
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