BBA-MBA Integrated (2020-25)

Term – IV

Cost Accounting

Group Assignment
Product category: Incense sticks 
Product name: Cycle pure Agarbatti three in one
Company name: N. Ranga Rao & Sons
Brand name: Cycle

Submitted by: Group 11

Roll no. Name Div

207339 Manu Lodha C

207365 Saurav Shukla C

Submitted to: Prof. Khyati Shah

Submitted on: 03/09/2021

 PREFACE

This Project Report has been prepared as a requirement for the subject: Cost Accounting of
BBA programme (Term IV) in the academic year 2020-25.

The project starts with overview of the company that own and manufactured ‘cycle
Agarbatti’ a leading incense manufacturing company. later understanding the process of
manufacturing incense stick and all possible cost incurred during the process.

Doing this assignment helped us enhance our knowledge regarding concepts of Cost and
its Types. We came to know the importance of teamwork and the role of dedication
towards work.
 ACKNOWLEDGEMENT

The completion of this assignment gives us much pleasure. We would like to show
our gratitude to Prof Khyati shah for giving us a good guideline for the
assignment and numerous consultations which helped us to complete this assignment
successfully. We are also grateful to Nirma University for giving us the Opportunity
to work on this assignment and expand our deepest gratitude to all those who have
directly and indirectly guided us in writing this assignment. The members of the team
have made valuable comment suggestions on this proposal which gave us inspiration
to improve our assignment. We thank all the people for their help directly and
indirectly to complete our assignment.

With Sincere Regards and

Thanks, Group - 11
A. Company/organization, brand and product
description

N. Ranga Rao founded the NR Group in Mysore, India, in 1948 as Mysore Products and
General Trading Company, which later became N. Ranga Rao & Sons. The group consists of
six businesses that specialize in essential oils, fragrances, incense, and electronics.
Ranga Rao & Sons is a maker of incense and fragrances that was founded in 1948. It has
approximately 500 perfumes in its collection, all of which are created and blended in-house.
Cycle is the most popular incense brand. Cycle Pure Agarbatties is now a global leader in
puja and home care, with products sold in over 65 countries.  As per 2016 Cycle has a 15%
market share in India's incense sector, which was estimated to be worth Rs. 1500 crore.
Amitabh Bachchan, Ramesh Aravind, and Saurav Ganguly are the current brand
ambassadors.
Cycle Pure's flagship product is Cycle Three in One Agarbatti. It is an amazing blend of love,
devotion, and prosperity. Fragrances that symbolize life's simplicity. Cycle Three in One is a
blend of three appealing scents in one convenient package:
 Serene (Lily) for Devotion - The delicate, mysterious scent of Serene produces an
atmosphere of peace around you, just like the serene surroundings where the lily
flourishes.
 Yugantar (fancy) for good fortune – Yugantar is a fascinating and appealing scent
loaded with the aroma of fresh fruit.
 Jagrane (Intimate) for love – An instantly energizing, aromatic and woody aroma of
lush greens with coniferous undertones warms the heart, calms the mind, and wakes the
senses.

B. Product process detail

The cycle agarbatti procedure begins with the preparation of a mixture of
numerous things that aid in the emission of smoke. To make the
combination last longer, charcoal powder, wood powder, and a chemical
are mixed together. This mixture is then mixed with water to make a paste
that will be used to wrap around the stick. The incense paste is wrapped
around the stick by a machine. Raw incense stick is ready after this
process. These sticks are now scented by dipping in scents to make
them smells. The smell of scent used depend on the product and fragrances
of the product.  In  our case 3 different scents are used. After the process of
fragrances, the incense stick is ready for packaging and distribution.

The incense stick is packaged in a paper box with its fragrance, and then de
livered to all age, wholesalers, and retailers. The store sells it to the end user.
 Mixture Paste Making
Preparation Preparation Incense stick

Distribution Packaging

C. List of costs
Based on the process cost item that would incur are as follow
1. Incense mixture
2. Wood Stick
3. Incense making machine
4. Employee Salary
5. Scent
6. Packaging material
7. Electricity charge
8. Transportation for distribution

D. Classification of costs

1. Natural classifications of 2. Degree of Traceability to the 3. Cost behaviour (In relation

costs
(i) Direct material
 Incense mixture
 Wood Stick
 Scent
 Packaging material
(ii) Direct labour
 Employee Salary
(iii) Direct expenses
 Electricity charge
 Transportation for
distribution
(iv) Selling and distribution
and administrative overheads
Product
(i) Direct cost
 Incense mixture
 Wood Stick
 Scent
 Packaging material
(ii) Indirect cost
 Incense making machine
 Employee Salary
 Electricity charge
 Transportation for
distribution
to changes in output, activity
or volume)
(i) Fixed cost
 Incense making
machine
 Employee Salary
 Electricity charge
(ii) Variable cost
 Incense mixture
 Wood Stick
 Scent
 Packaging material
 Transportation for
distribution
(iii) Mixed cost - (NIL)

 Transportation for
distribution
References

 https://www.cycle.in/cycle-incense-sticks/three-in-one-incense-sticks
 https://en.wikipedia.org/wiki/NR_Group
 https://www.youtube.com/watch?v=Sit8AoyZVrM
 https://www.nrrs.com/pages/ourstory