Shri Shivaji Education Society, Karad’s Board for Higher

Education, Karad

VENUTAI CHAVAN COLLEGE,

KARAD
(Affiliated to Shivaji University Kolhapur)

PROJECT REPORT
On
“ THE STUDY OF COST SHEET OF -

KSHUDHA SHANTI KENDRA KARAD ”

Submitted By

Participated Students Name

1.Rutuja Tushar Yadav

(Roll No.1688)

2.Neha Sachin Kanase

(Roll No. 1657)

Academic Year 2023-24

Under Guidance Of

Prof. Bagwan M. S.
&
Prof. Bhasme S. C.
(Head of Commerce Department)
 Shri Shivaji Education Society, Karad’s Board for Higher

Education, Karad

VENUTAI CHAVAN COLLEGE,

KARAD
Vidyanagar, Saidapur, Taluka - Karad, Dist. – Satara 415124

CERTIFICATE

This is to certify that Ms. Rutuja Tushar Yadav and

Ms.Neha Sachin Kanase as student of B.Com - III Course, Sem
VI has completed their project work title “THE STUDY OF
COST SHEET OF - KSHUDHA SHANTI KENDRA
KARAD” as a part of curriculum activity, during the academic
year 2023-24.

GUIDE HOD PRINCIPAL

Prof. Bagwan M. S. Prof. Bhasme S. C. Dr. Jadhav L. G.

 ACKNOWLDGEMENT

A project reports on of “THE STUDY OF COST SHEET OF –KSHUDHA

SHANTI KENDRA KARAD ” for the year 2023-24. It is for the

requirement as curriculum activity of bachelor’s degree in commerce from

Shivaji University of Kolhapur.

First, We thank to our principle Dr. Jadhav L. G. for providing the required

Facility.

We are thankful to our HOD Prof. Bhasme S. C. to given us guidance for

Preparation of this project work.

And We are thankful to our guide Prof. Bagwan M. S., to given us guidance for

Preparation of this project work.

Lastly, I thank to our friends and teachers who have directly and

indirectly helped in completing this project work.

Date: 10/01/2024

Place: Karad
 DECLARATION
We declare that project entitled “THE STUDY OF COST SHEET

OF -KSHUDHA SHANTI KENDRA KARAD” for the year 2023-24. It

written by us and submitted to VENUTAI CHAVAN COLLEGE, KARAD
affiliated to Shivaji University Kolhapur for B.Com. as part of curricular
activity. This present project work has not been submitted to any other college

or institutions.

Students Name & Sign

1. Yadav Rutuja Tushar
(Roll No.- 1688)

2. Kanase Neha Sachin

(Roll No. 1657)

Date: - 10/01/2024

Place: - Karad Academic Year 2023-24

 NAME OF ENTITY

CERTIFICATE

This is to certify that VENUTAI CHAVAN COLLEGE, KARAD

B.Com. III students - Yadav Rutuja Tushar and Kanase Neha Sachin
has been done project work on our organization KSHUDHA SHANTI

KENDRA KARAD at Mangalwar Peth, Karad as part of their

curriculum, they collected information by primary from our Outlet as

well as available secondary open sources. They have successfully

completed project to the best of their abilities. We wish them good

luck for their bright future career. This certificate is issued on request

of applicants.

Date: - 05/01/2024 Authorized signatory

Place:- Karad
 INDEX

S TITLE PAGE
R. NO.
N
O

1. Introduction 01
07

2. Objectives of the Project 03

08

3. Research Methodology 04
09

4. Data Collection Methods 10

05

5. Name of Entity 07
12

6. Cost Sheet 08
13

7. Conclusion 10
14

8. Bibliography 1511
 1. INTRODUCTION

Topic - Cost Sheet

Theory

● Meaning -
Cost Sheet is a document which provides a form for the presentation of
estimated detailed cost in respect of a cost unit. The statement summarizes the cost
of manufacturing a particular list of product and discloses-

1. Prime cost
2. Work / Factory cost
3. Cost of Production
4. Cost of Goods sold
5. Total Cost

● Objectives -

1. Determining cost: It gives you both the total cost and cost per unit of a
product.

2. Fixing selling price: In order to fix the selling price of a product, you need to
create a cost sheet so you can see the details of its production cost.

3. Cost comparison: It helps the management compare the current cost of a

product with a previous per unit cost for the same product & take corrective
measures if costs have increased.

4. Cost control: The cost sheet is an important document for a manufacturing unit,
as it helps in controlling production costs, monitoring labour, material and
overhead costs at each step of production.

5. Decision-making: Some of the most important decisions management makes

are based on the cost sheet. Whenever a business needs to produce or buy a
component, or quote prices for its goods on a tender, managers refer to the cost
sheet.

● Advantages -

1.It gives the break up of total cost by elements & sub- divisions.

2.It discloses the total cost as well as the cost per unit.

3.It helps for preparation of tenders or quotations.

4.It helps for fixing selling price.

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● Limitations -

1. Can be time-consuming – Cost sheets can eat up a lot of time as they require detailed
data collection and analysis.

2. May lack accuracy – They may not always be accurate due to errors in data input or
calculation.

3. Doesn’t reflect market conditions – They don’t take into account market conditions,
such as demand and supply fluctuations, which can affect costs.

4. Ignores non-monetary factors – Cost sheets often overlook non-monetary factors like
employee morale or customer satisfaction, which can impact overall performance.

5. Can lead to wrong decisions – Relying heavily on cost sheets can lead to poor decisions,
if they’re not balanced with other business considerations.

2
 2. OBJECTIVES OF THE PROJECT

1. To learn preparing cost sheet of a business.

2. To know how they calculate or determine the
price of their products.

3. To learn cost management in business.

4. To get to know about the financial position of a
business.

5. To get real life experience of cost sheet

preparation.

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 3. RESEARCH METHODOLOGY
Research methodology consisting of enunciating the problem, formulating a

hypothesis, collecting the facts or data, analysing. the facts and reaching certain

conclusions either in the form of solutions(s) towards the concerned. problem or in certain

generalisations for some theoretical formulation.

TYPES OF RESEARCH METHODOLOGY

QUALITATIVE
Qualitative research involves collecting and analyzing written or spoken words and textual

data. It may also focus on body language or visual elements and help to create a detailed

description of a researcher's observations. Researchers usually gather qualitative data

through interviews, observation and focus groups using a few carefully chosen

participants.

This research methodology is subjective and more time-consuming than using quantitative

data. Researchers often use a qualitative methodology when the aims and objectives of the

research are exploratory. For example, when they perform research to understand human

perceptions regarding an event, person or product.

QUANTITATIVE
Researchers usually use a quantitative methodology when the objective of the

research is to confirm something. It focuses on collecting, testing and measuring numerical

data, usually from a large sample of participants. They then analyze the data using

statistical analysis and comparisons. Popular methods used to gather quantitative data are:

● Surveys
● Questionnaires
● Test
● Databases
● Organizational records
This research methodology is objective and is often quicker as researchers use

software programs when analyzing the data. An example of how researchers could use a

quantitative methodology is to measure the relationship between two variables or test a set

of hypotheses.

4
 4. DATA COLLECTION METHOD
Data collection is the process of gathering and measuring information on variables

of interest, in an established systematic fashion that enables one to answer stated research

questions, test hypotheses, and evaluate outcomes. The data collection component of

research is common to all fields of study including physical and social sciences,
humanities, business, etc. While methods vary by discipline, the emphasis on ensuring

accurate and honest collection remains the same.

The goal for all data collection is to capture quality evidence that then translates to

rich data analysis and allows the building of a convincing and credible answer to questions

that have been posed. Regardless of the field of study or preference for defining data

(quantitative, qualitative), accurate data collection is essential to maintaining the integrity

of research.

Data collection is one of the most important stages in conducting a research. You

can have the best research design in the world but if you cannot collect the required data

you will be not be able to complete your project. Data collection is a very demanding job

which needs thorough planning, hard work, patience, perseverance and more to be able to

complete the task successfully.

1. PRIMARY DATA

Data that has been collected from first-hand-experience is known as primary data.

Primary data has not been published yet and is more reliable, authentic and objective.

Primary data has not been changed or altered by human beings; therefore its validity is

greater than secondary data.

Sources of Primary Data: Sources for primary data are limited and at times

it becomes difficult to obtain data from primary source because of either scarcity of

population or lack of cooperation. Following are some of the sources of primary data.

i. Survey: Survey is most commonly used method in social sciences, management,

marketing and psychology to some extent. Surveys can be conducted in different methods.

ii. Questionnaire: It is the most commonly used method in survey. Questionnaires are

5
a list of questions either open-ended or close-ended for which the respondents give

answers.

iii. Interview: Interview is a face-to-face conversation with the respondent. In

interview the main problem arises when the respondent deliberately hides information

otherwise it is an in depth source of information. The interviewer can not only record the

statements the interviewee speaks but he can observe the body language, expressions and

other reactions to the questions too.

iv. Observations: Observation can be done while letting the observing person know

that s/he is being observed or without letting him know. Observations can also be made in

natural settings as well as in artificially created environment.

2. SECONDARY DATA
Secondary data (also known as second-party data) refers to any dataset collected by any

person other than the one using it.

Secondary data sources are extremely useful. They allow researchers and data analysts to

build large, high-quality databases that help solve business problems. By expanding their

datasets with secondary data, analysts can enhance the quality and accuracy of their

insights. Most secondary data comes from external organizations. However, secondary

data also refers to that collected within an organization and then repurposed.

Secondary data has various benefits and drawbacks, which we’ll explore in detail in section

four. First, though, it’s essential to contextualize secondary data by understanding its

relationship to two other sources of data: primary and third-party data.

6
 5. Name of Entity
Jankalyan Kshudha Shanti Kendra is an initiative of
the Janakalyan Pratishthan, Karad. It aims to
provide food at lowest possible prices to everyone.

They provide food food at possible minimum price to

the needy and poor .

It was established in 1998 with the purpose to feed

the poor thus naming it as ‘Kshudha Shanti’. They

provide employment to about 10 to 12 women and

men.

We have taken accounts of the daily transactions of

theirs and tried to prepare a cost sheet of the

business. The cost sheet indicates the expenses and

profits that are made by the business. We will be

looking at those in this project.

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 6. COST SHEET

Particulars ₹ ₹

Direct Material 5,00,000

Opening Stock 2,00,000

(+) Purchases of Raw material 5,00,000

(+) Carriage Inward 20,000

(-) Closing stock of Raw material 2,20,000

5,00,000

Direct Labour 1,50,000

Direct Expenses 10,000

Prime Cost 6,60,000

Add - Work Expenses

Fuel, Oil & Waste 2,50,000

Gas, Water and Electricity 1,00,000

Repairs 2000 3,52,000

Factory/Work Cost 10,12,000

Add - Office Expenses

Rent 90,000

Accountant’s Salary 60,000

Telephone bill 2000 1,52,000

Cost of Production 11,64,000

Add - Selling Expenses

Free Samples 5000

Discount 1000

Delivery Van Expenses 3000 9000

8
 Total Cost 11,73,000

Add - Profit 77,000

Sales 12,50,000

9
 7. CONCLUSION

● From the above cost sheet it can be concluded that the

business is financially stable and maintaining fair
profit.

● Their office expenses and selling expenses are very

low.

● Due to less direct or indirect expenses products' cost is

maintained low.

● Consistent flow of Raw material and finished goods

lead to high prime Cost.

10
 8. BIBLIOGRAPHY

https://www.google.com/
https://www.wikipidia.com
https://www.loksatta.com/
https://timesofindia.indiatimes.com/

Photo with owner

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