SYNOPSIS

Name: SHASHIDHAR YADAWAD

Reg, No: 19C01599

Title of the Project: “A STUDY ON MARGINAL COSTING”

Name of the Bank: “SIDDHIVINAYAK CO-OPERATIVE SOCIETY LTD”

INTRODUCTION

It was an opportunity to learn the theoretical aspects of the “Siddhivinayak co-operative

society Ltd.” A study focus on the Marginal Costing and this study also collecting
information of the company regarding for the study. Like process costing or job costing,
marginal costing is not a distinct method of ascertainment of cost but is a technique which
applies existing methods in a particular manner so that the relationship between profit and the
volume of output can be clearly brought out. Marginal Costing ascertains marginal and
variable costs and the effect on profit, of the changes in volume or type of output, by
differentiating between variable costs and fixed costs. To any type of costing such as
historical, standard, process or job; the marginal costing technique may be applied.

Under the process of Marginal Costing, from the cost components, fixed costs are excluded.
The difference which arises between the variable costs incurred for activities and the revenue
earned from those activities is defined as the gross margin or contribution. It may relate to
total sales or may relate to one unit.

OBJECTIVES OF THE STUDY:

 It helps to study the concept of Marginal Cost.

 It helps analysis the various elements of marginal costing.
 It helps to study the trend in the Marginal Costing using various tools.
 It helps to study the last five years’ performance the company.
NEED OF THE STUDY:

 Helps the company to identify their financial position by which the company
can increase or decrease the total cost of production.
 It also helps the company to identify and offer a minimum rate of product
price according to the expectations of the customer so that the company’s sales
level will get increased.

SCOPE OF THE STUDY:

 The study covering a period of five years 2018-2021. The study of performance is
compared within this period.
 To understand the role of the Marginal Costing.
 The study is focused to analysis the weaker position of the firm.

RESEARCH METHODOLOGY:

SOURCES OF DATA:

1. Primary Data
2. Secondary Data

1. Primary Data: The information regarding primary data is collected by visiting the
company frequently and the other relevant information was collected by personal
discussion with the concern department head and their subordinates.

2. Secondary Data: The secondary data is collected from the various sources of the
company manual and company’s annual reports for the study period.
LIMITATIONS OF THE STUDY:

 The study focuses on Marginal Cost only.

 The analysis and interpretation done in this project is purely based on the information
given by the organization.
 The study covers only for the period of 5 years.
 The study of Marginal Costing id confined to Siddhivinayak co-operative society ltd,
only.