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Cost & Managerial Accounting Project Report On Cement Industry
Cost & Managerial Accounting Project Report On Cement Industry
PROJECT REPORT
ON CEMENT INDUSTRY
MADE BY:
USMAN IDREES (4180)
SOHAIB ASIF (4195)
ZUBAIR AHMED (4173)
JAWWAD UR REHMAN (4161)
COMPARISON OF PRODUCT & PERIOD COST:
BESTWAY KOHAT
2009 2008 2007 2009 2008 2007
Product cost 3204 2548 2172 3703 3193 2649
Period Cost 471 158 64 193 147 123
FLYING MAPLE LEAF
Year 2009 2008 2007 2009 2008 2007
Product Cost 7946 10356 2411 3317 2878 2672
Period Cost 273 599 45 794 447 115
BESTWAY CEMENT KOHAT CEMENT
3500 4000
3000 3500
3000
2500
2500
2000 Product Cost
2000 Product cost
Period Cost
1500 Period Cost
1500
1000 1000
500 500
0 0
2009 2008 2007 2009 2008 2007
12000 3500
10000 3000
8000 2500
6000 2000
Product cost Product cost
Period Cost 1500 Period Cost
4000
1000
2000
500
0
2009 2008 2007 0
2009 2008 2007
ANALYSIS:
PRODUCT:
The Product cost of Best way Cement is the highest compared with
other three although there is a little difference between Bestway and
Maple Leaf's product cost. Product cost has increased because the total
Overhead cost of both the companies has increased from past years.
The Product cost of Flying cement had decreased in 2008 because it
faced loss but the company recovered in 2009.Kohat Cement's Product
cost has not increased sharply and has increased steadily because of
relatively same level of production and MOH costs. Major product cost
of all the four cement companies in this category is fuel and power
cost. Fuel and Power cost has increased for all four companies adding
much expense amount to the accounts.
PERIOD COST:
In all three years the period cost of Kohat and Flying Cement has
remained relatively same. Bestway Cement's cost has increased
because distribution cost has increased very much over the years.
Maple leaf's Period cost has increased sharply due to sharp increase in
distribution cost from 2007. The other major cost for all the four
companies is the administrative cost. The most increase in
administrative cost was seen by Bestway cement and Maple Leaf
Cement.
COMPARISON OF FIXED COST AND VARIABLE COST:
BESTWAY KOHAT
Year 2009 2008 2007 2009 2008 2007
V.COST 3425 2471 1958 3400 1698 2661
F.COST 251 235 278 497 565 517
FLYING MAPLE LEAF
Year 2009 2008 2007 2009 2008 2007
V.COST 7173 8477 2256 3715 2854 2360
F.COST 1046 2479 201 397 271 426
1000 1000
500 500
0 0
2009 2008 2007 2009 2008 2007
1200000 16000000
14000000
1000000
12000000
800000 2009 10000000 2009
2008 8000000 2008
600000
2007 2007
6000000
400000
4000000
200000
2000000
0 0
B.E(T) SALES B.E(T) SALES
ANALYSIS:
BREAKEVEN (UNITS)
The breakeven of maple leaf and Bestway had increased in 2008 from
2007 because profit margin of both companies had decreased however
in 2009 breakeven decreased because of increased profit margin .The
breakeven of Kohat cement has however remained constant increasing
a little in 2008.Flying cement faced a loss in 2008 therefore in 2009
profit margin of Flying cement has decreased.
ANALYSIS