Imperial Tobacco Company

of India Limited.
Unit costing report.

INTRODUCTION
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of
India Limited'.. The Company's headquarter building, 'Virginia House'. The Company's
ownership progressively Indianised, and the name of the Company was changed to I.T.C.
Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a
wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology,
Packaging, Paperboards & Specialty Papers, Agro-Exports, Foods, Lifestyle Retailing and
Greeting Gifting & Stationery - the full stops in the Company's name were removed effective
September 18, 2001.
ITC is one of India's foremost private sector companies with a market capitalization of
nearly US $ 19 billion and a turnover of over US $ 5 billion.* ITC is rated among the World's
Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes
magazine, among India's Most Respected Companies by Business World and among India's
Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable
(Company) Brands', in a study conducted by Brand Finance and published by the Economic
Times. ITC also ranks among Asia's 50 best performing companies compiled by Business
Week..
Registered Office: VIRGINIA HOUSE
37 J.L.NEHRU ROAD, KOLKATA 700 071
EPABX NO. : 91-(0)33 22889371

THEORY OF UNIT COSTING

v

Definition of Unit Cost:The cost incurred by an organization to produce, store and sell one unit of a particular product or service.
Unit cost include all fixed costs (i.e. facility and equipment) and all variable costs (labor, materials, etc.)
involved in the production of a service or product.

Importance of knowing unit costing:-

Necessary for determining the margin for each unit of service provided.

Critical for assessing the viability of new contracts.

Important element of your competitive analysis.

Essential for maintaining the fiscal health of your organization, especially in an era of rate reduction by
prayers.

Uses of Unit Costing

Once we know what our unit costs are, what can we do with them.

We can measure cost effectiveness by looking at unit costs year on year.

We can set unit costs as a target, with the aim of maintaining the unit cost.

We can compare our performance against other councils.

APPLICTION OF UNIT COSTING

Unit cost is applicable to Manufacturing Industries where the production is

continuous and uniform, and a single article is produces in two or more grades.
ITC use unit costing in Paper & packaging industries.
Unit Costing is calculated by following formula:
Cost Per Unit =
Total Cost
Number of unit Produced

CONCLUSION

We Come to Know From this report that ITC is Growing day by day.

We show that ITC ltd Profit is increase in the year 2014 in compare to year
2013.

We also think that ITC Capture high market share. SO, we can say that ITC
is at a good Position.

The company today has achieved a lot in market and is standing at great position so it
becomes very difficult to give any suggestions.

We recommend ITC to expand their business in Soft drink Market and beat with the
well known leader of soft drink Coca-Cola and Pepsi.

They have to make their policy Strong for collection of money so the bad debt will
not occurs.

The company should organize more seminars to let people know about their activities
and quality of their Product. It should now also try to enter in some other field except
for only manufacturing Garments and Food Products.