A PROJECT REPORT ON

A FIELD PROJECT SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN THE PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE DEGREE OF
MASTER OF COMMERCE
(COST AND WORKS ACCOUNTING)

. SUBMITTED BY
MISS. PRITI RANGANATH BHITE
Roll No-

UNDER THE GUIDANCE OF

Rayat Shikshan Sanstha's

NAME OF THE DEPARTMENT

NAME OF THE COLLEGE

WRITE MONTH AND YEAR

UNDER GUIDANCE OF
ASST. PROF. MR. JADHAV MAHESH M
MASTER DEGREE OF COMMERCE
(SAVITRIBAI PHULE PUNE UNIVERSITY,PUNE)
SUBMITTED BY, 1
 GUIDE CERTIFICATE

This is to certify that work incorporated in the project of

METHODS OF COST ACCOUNTING
AT
”D.M.K CONTRACTOR AHEMDNAGAR“- 414001

Submitted by
MISS. SATAV PRATIKSHA SAMPAT

Was carried out by the candidate under my

supervision and guidance.

Such material as has been obtained from other sourced has been
duly acknowledged in thesis .

Date:
Place: Ahmednagar

ASS. Prof. Jadhav M.M.

Project Guide

2
 Rayat Shikshan Sanstha’s
RADHABAI KALE MAHILA MAHAVIDYALAYA,
AHMEDNAGAR

CERTIFICATE
This is to certify that, MISS. PRIYANKA KISAN YELWANDE of Radhabai
Kale Mahila Mahavidyalaya, Ahmednagar has completed project work title “COST
CONTROL AND COST REDUCTION D.M.K CONTRACTOR
AHEMDNAGAR” in practical fulfillment of requirement for completion of master
degree of commerce.
This project report is record of authentic work carried by her/ she was worked under
my guidance.
Place:- Ahmednagar
Date:-

Ass. Prof. Mr. Jadhav Mahesh M.

Project Guide Head of Department
Internal External

3
 ACKNOWLEDGEMENT
Inspiration is the necessary for success. The project report on “COST CONTROL
AND COST REDUCTION D.M.K CONTRACTOR AHEMDNAGAR”. which
prerequisites part of my M.Com of Savitribai Phule University.
My sincere thanks to project guide Prof. M. M. Jadhav Radhabai Kale Mahila
Mahavidyalay, Ahmednagar who particularly and personally guided and help me
time to time for completing this project within the stipulated time.
In addition , I thank to the teachers helped me in the successful completion of this
project report.
Date: / / 2021
Place : Ahmednagar

MISS. YELWANDE PRIYANKA KISAN

(M.COM - II)

4
 DECLARATION
I do hereby that this project titled “COST CONTROL AND COST REDUCTION
D.M.K CONTRACTOR AHEMDNAGAR ” submitted by me to the department of
Radhabai Kale Mahila Mahavidyalay, Ahmednagar. Is the project of own my effort. To
the best of my knowledge and belief that this report is based on reliable actual
measurement. This dissertation has not been submitted to any other university for the
award of the any degree.
Date : / / 2021

Place : Ahmednagar

MISS. YELWANDE PRIYANKA KISAN

(M.COM2)

5
 INDEX
Sr. No. Topic Name Page No.

1 Introduction 07-26

2 Company Profile 27-34

3 Objective Of Study 35-36

4 Review 37-39

5 Research Methodology 40-41

6 Data Analysis And Interpretation 42-53

7 Observation And Findings 54-56

8 Conclusion And Suggestions 57-59

9 Questionnaire 60-61

10 Bibliography 62-63

6
1) INTRODUCT
ION

7
TOPIC No. 1
INTRODUCTION
Costing is simply a method of cost finding. It is the technique and process of ascertaining
the costs. It is the classifying, recording and appropriate allocation of expenditure for the
determination of cost of product or service and for the presentation of suitably arranged data for
the purposes of control and guidance of the management. It includes ascertaining of the costs of
every order, job, batch, contract, process, service or unit as may be appropriate. It deals with the
costs of production, selling and distribution. Thus, costing is the proper allocation of expenditure
whereby reliable cost may be ascertained appropriately and suitably presented to afford guidance
to the manufacturing, traders or service providers in control of their respective business.
Costing has many uses which includes the preparation of statistical data, the application of
cost control methods and the ascertaining of the profitability of activities carried out or planned. It
is the means which consists of concepts, methods and procedures used to measure, analyze or
estimate the cost, profitability and performance of individual products, department and other
sectors of company operations.

Meaning of costing :
Costing is any system for assigning costs to an element of a business. Costing is typically
used to develop costs for customers, distribution channels, employees, geographic regions,
products, product lines, processes, subsidiaries, and entire companies.

Costing may involve only the assignment of variable costs, which are those costs that vary
with some form of activity (such as sales or the number of employees). This type of costing is called
direct costing. For example, the cost of materials varies with the number of units produced
The Institute of Cost and Management Accountants (ICMA) defines costing as “ The
technique and process of ascertaining costs. This is a reasonable definition, but it only addresses
the dimensions of technique and process.”
To elaborate on this, costing can also be defined as a systematic process for determining the
unit cost of output produced or service rendered.

8
Objectives of Costing
The objectives of costing are broadly divided into the following three areas.

1. Ascertainment of Cost :
Ascertainment of cost is the first and most important objective of costing. The aim is to
determine the cost of each product, process, or operation, and to ensure that all expenses
are absorbed into the cost of the products, the techniques, and the process of costing
used. To ascertain the cost of management, with the help of the costing department, it
is worthwhile to make preliminary investigations and introduce a system for recording
costs.
A proper and complete record is maintained for materials, labor, and other
expenses (referred to as covered heads). Thus, the management periodically collects
cost data, which is used as the basis for determining the selling price.

2. Cost Control :
Ascertaining costs alone is not sufficient. Naturally, it is not enough because it is the
cost that determines the selling price and, in turn, the profitability. As such, the norm
that everyone attempts to follow is “the lower the cost, the greater to profit.” To fulfill
the underlying idea behind this norm, it is important to control the cost so as to reduce
the cost of a product or service.

3. Guidelines for Management

Costing is a faithful servant for managers within an organization. It aids
managerial decision-making from all practical points of view. Cost data obtained
from costing enable managers to strive toward efficiency for the whole
organization. Cost data provide organizational guidelines for various managerial
decisions.
For example, the use of cost data can guide the introduction of a new product
line, lead to the identification of unused capacity, or highlight expansion
opportunities.

4. Assisting Surveillance in Decisions

Decision-making implies a method of assigning a program of action from
alternative methods. For rendering a selection between different methods of
activity. It is essential to generate an outcome comparison which might be
completed under different options. Such comparisons have only been rendered
feasible with the support of data from cost accounting.

5. Selling price Determination

Cost data is beneficial in determining quotations or selling prices. The product price
includes the total margin and cost compelled. Cost accounts procure detailed data

9
 regarding cumulative expenses in the shape of various elements. They also deliver
data for variable cost and fixed cost so that the magnitude of price deduction to be
accomplished in case of intense pursuit may be determined.
The fundamental objective of costing Is to curb cost. The aim is to undervalue the
manufacturing cost comparison of substantial cost with routine demonstrates the
disparity in contentions.

Advantages of costing
1] Measuring and Improving Efficiency
Cost accounting allows for data that enables the firm to measure efficiency. This
could be efficiencies with respect to cost, time, expenses etc.
Standard costing is then used to compare actual numbers with the industry or
economy standards to indicate changes in efficiency.

2] Identification of Unprofitable Activities

Just because a firm is making overall profits, it does not mean all activities are
profitable. Cost accounting will help us identify the profitable and unprofitable
activities of the firm. So activities that cause the firm losses can be made profitable or
eliminated. This can happen due to the cost ascertainment done in cost accounting

3] Fixing Prices
This is one of the important advantages of cost accounting. Many businesses price
their products based on the cost of production of these products.
To enable this, we first need to calculate the actual cost of production of these
products. Costing makes the distinction between fixed cost and variable cost, which
allows the firm to fix prices in different economic scenarios. Prices that we fix
without the help of cost accounting can be too high or low, and both cause losses to
the business.

4] Price Reduction
Sometimes during tough economic conditions, like depression, the prices have to
be reduced. In some cases, these prices are reduced to below the total cost of the
product. This is to help the company survive this tough period. Such decisions the
management has to take are guided by cost accounting.

5] Control over Stock

Another important advantage of cost accounting is that it helps with restocking
and control over materials. Cost accounting will help us calculate the most ideal and
economic re-order level and quantities. This will ensure that the firm is never
overstocked or understocked. Also costing allows the management to keep a check
over these raw materials, WIP etc.

10
6] Evaluates the Reasons for Losses
Every firm has to deal with periods of profits and losses. But now they must
always evaluate or investigate the reasons for the losses suffered. This will help to
tackle the problem or overcome the cause by some other means necessary. So if you
cannot eliminate the reason you can at least minimize the losses.

7] Aids Future Planning

One of the biggest advantages of cost accounting is that it will help the
management with future plans they may have. For any production or selling plans, it
is important to have detailed data about the machines, the labor capacity, output
levels, levels of efficiency of each process etc.

Methods of Costing
Manufacturers have the challenging task of setting the pricing of the product.
With increasing competition in the market, the manufacturers cannot set the pricing to
be too high. If the price is high, they will probably lose the customers to the
competitors. And if the pricing of the product is set too low, the business will be at a
loss. To solve this issue, an effective costing method is required. It is important for the
business to strike a balance by providing the best value to the customers and
simultaneously ensuring financial stability. In this blog, let us learn more about the
costing methods
Costing methods are the process of determining the costs of a product or
service. With this concept, several methods are developed, to ascertain the pricing.
These techniques analyses various cost components such as raw materials, labour,
overhead expenses and many other significant factors. It helps in calculating the total
cost per unit or service accurately.
There are different methods of costing, but depending on the nature of the
business, the costing method is selected. Each costing method has its own advantages
and processes. Costing methods are vital for the business to make the right pricing
decisions as they impact the profit margins and financial performance of the business.
The right costing method is a boon for the business to achieve optimal cost control
and it helps in making significant pricing strategies.
The method of cost accumulation and identifying them to products and services
depends upon the nature of operations in an enterprise, Cost accounting procedure
varies from one company to another company. E.g., a non-manufacturing enterprise
may not follow the procedure of accumulating costs with specific customer orders.
Similarly, a hospital may prefer to accumulate costs in a manner as to provide the cost
of out-patient treatment or a specific medical treatment. A concern organizing
exhibitions and fairs may be interested in knowing the cost of an exhibition to be
organized in a particular season. On the contrary, a contractor accumulates costs for
each separate contract. Although the procedure of accumulating costs may differ
among different types of organizations, the basic principles underlying cost

11
accumulating procedures are applicable to all types of organizations. Each cost
accounting system aims to provide information that is required by the management.

Need for Methods of Costing

Methods of Costing indicates a systematic procedure established for
ascertaining cost of a product, job process or services by using the principles of
costing. A Cost Accounting method is merely the process of ‘collecting and presenting
costs. The nature of industries differs. Some are very simple and produce only one
product eg. Brick-making. Some industries may produce only one product but it may
really be an assembly of numerous components e.g. bicycle, motor car etc. Again
there may be a homogeneous product but involving many distinct stages and
processes
Such as vegetable oil. In some case there may be important by-products or
joint products e.g. petroleum products, sugar etc. It is therefore, natural that the
exact method employed to ascertain cost per unit should depend on the nature of
the industry. The general principle of ascertaining cost of production per unit are the
same, but the methods ascertaining and presenting the costs vary with the type of
production. One standard method of costing may not be applied suitably to various
types of industries because they differ in type of products, methods of production,
nature of industry, scale of operation, volume of output etc. Hence, there is a need
for introducing various methods of costing which can be applied more suitably to a
manufacturing business.
In manufacturing organizations, the principles of cost accumulation and
their identification with products are more clear and visible and therefore the
principles used by a manufacturing enterprise is often used by other organizations
also for accumulating costs. In manufacturing concerns, costs are accumulated and
assigned to products on the basis of the following cost accounting methods viz. A)
Specific Order Costing and B) Operations Costing But according to Mr. Batty, L "Many
costing systems do not fall “neatly into the category of either job or process costing.
Often, systems use some features of both the main costing systems”. It is, for this
reason, that he uses the term “hybrid costing systems” for all those methods that
combine the features of the basic costing methods. The Figure 1.1 indicated below
shows Various Methods of Costing.

12
13
14
Objectives of Costing
The objectives of costing are broadly divided into the following three areas.

6. Ascertainment of Cost :
Ascertainment of cost is the first and most important objective of costing. The aim is to
determine the cost of each product, process, or operation, and to ensure that all expenses
are absorbed into the cost of the products, the techniques, and the process of costing
used. To ascertain the cost of management, with the help of the costing department, it
is worthwhile to make preliminary investigations and introduce a system for recording
costs.
A proper and complete record is maintained for materials, labor, and other
expenses (referred to as covered heads). Thus, the management periodically collects
cost data, which is used as the basis for determining the selling price.

7. Cost Control :
Ascertaining costs alone is not sufficient. Naturally, it is not enough because it is the
cost that determines the selling price and, in turn, the profitability. As such, the norm
that everyone attempts to follow is “the lower the cost, the greater to profit.” To fulfill
the underlying idea behind this norm, it is important to control the cost so as to reduce
the cost of a product or service.

8. Guidelines for Management

Costing is a faithful servant for managers within an organization. It aids
managerial decision-making from all practical points of view. Cost data obtained
from costing enable managers to strive toward efficiency for the whole
organization. Cost data provide organizational guidelines for various managerial
decisions.
For example, the use of cost data can guide the introduction of a new product
line, lead to the identification of unused capacity, or highlight expansion
opportunities.

9. Assisting Surveillance in Decisions

Decision-making implies a method of assigning a program of action from
alternative methods. For rendering a selection between different methods of
activity. It is essential to generate an outcome comparison which might be
completed under different options. Such comparisons have only been rendered
feasible with the support of data from cost accounting.
15
 10. Selling price Determination
Cost data is beneficial in determining quotations or selling prices. The product price
includes the total margin and cost compelled. Cost accounts procure detailed data
regarding cumulative expenses in the shape of various elements. They also deliver
data for variable cost and fixed cost so that the magnitude of price deduction to be
accomplished in case of intense pursuit may be determined.
The fundamental objective of costing Is to curb cost. The aim is to undervalue the
manufacturing cost comparison of substantial cost with routine demonstrates the
disparity in contentions.

Advantages of costing
1] Measuring and Improving Efficiency
Cost accounting allows for data that enables the firm to measure efficiency. This
could be efficiencies with respect to cost, time, expenses etc.
Standard costing is then used to compare actual numbers with the industry or
economy standards to indicate changes in efficiency.

2] Identification of Unprofitable Activities

Just because a firm is making overall profits, it does not mean all activities are
profitable. Cost accounting will help us identify the profitable and unprofitable
activities of the firm. So activities that cause the firm losses can be made profitable or
eliminated. This can happen due to the cost ascertainment done in cost accounting

3] Fixing Prices
This is one of the important advantages of cost accounting. Many businesses price
their products based on the cost of production of these products.
To enable this, we first need to calculate the actual cost of production of these
products. Costing makes the distinction between fixed cost and variable cost, which
allows the firm to fix prices in different economic scenarios. Prices that we fix
without the help of cost accounting can be too high or low, and both cause losses to
the business.

4] Price Reduction
Sometimes during tough economic conditions, like depression, the prices have to
be reduced. In some cases, these prices are reduced to below the total cost of the
product. This is to help the company survive this tough period. Such decisions the
management has to take are guided by cost accounting.

5] Control over Stock

Another important advantage of cost accounting is that it helps with restocking
and control over materials. Cost accounting will help us calculate the most ideal and

16
economic re-order level and quantities. This will ensure that the firm is never
overstocked or understocked. Also costing allows the management to keep a check
over these raw materials, WIP etc.

6] Evaluates the Reasons for Losses

Every firm has to deal with periods of profits and losses. But now they must
always evaluate or investigate the reasons for the losses suffered. This will help to
tackle the problem or overcome the cause by some other means necessary. So if you
cannot eliminate the reason you can at least minimize the losses.

7] Aids Future Planning

One of the biggest advantages of cost accounting is that it will help the
management with future plans they may have. For any production or selling plans, it
is important to have detailed data about the machines, the labor capacity, output
levels, levels of efficiency of each process etc.

17
COMPANY PROFILE

18
TOPIC NO.2
Company Profile
Company Name : D.M.K. CONTRACTORS
Contact Person : Mr. KISHOR MUNOT
Mobile/Cell no : 9822371343
Telephone : 0241-2357476
Address : DMK HEIGHTS,OPP. ILAKSHI
-SHOWROOM,NAGAR PUNE
-ROAD, Ahmednagar
- 414001, Maharashtra, India.

Year of Establishment: 2002

Legal Status of Firm : Proprietor
Nature of Business : Dealer and
Manufacturing.
Number of Employees : 50
Turnover : 2 Cores.

19
We are proud to introduce ourselves as “D.M.K.
CONTROCTIONS ” a fast growing company in the field of
Refrigeration and a complete solution provider.
Maharashtra refrigeration Established in 1974 and has
been successfully the need of our customer since
inception.
“Always Committed to your Comfort”
The name always gives result of high intention, sincere
efforts, intelligent direction and skilful execution; it
represents the wise choice of many alternatives.

Mission and Vision –

Concerned about client’s needs & satisfy the market
demands has been and is Maharashtra Refrigeration’s
everlasting aim, we will make significant effort to improve
our technology, supply quality products and service to
satisfy client’s demands.
“We are committed to Quality”
• To develop and deliver high quality industrial
refrigeration and equipment on time and at the
most favorable price.
• To promote our employee’s competence and
satisfaction.

20
 • To fulfill and exceed our customer’s
expectations.
• To continually improve on the above.

Business Model-
We are a team of people working to achieve a common
goal of 100% customer satisfaction. Our team and
contractors are equipped with latest tools and tackles to
execute the project with the quality aspects within
scheduled.

21
Business Type

22
TEAM
We have strong and dedicated team of qualified
and managerial and technical professionals who
constantly work upon to achieve our goal of total
customer satisfaction our team innovate the best casting
solution for our clients needs and outsource them with
unmatched promptness and efficiency our team
possesses through professional attitude and always
strive to achieve higher level of precision in outsourcing.

AFTER SALE SUPPORT

Having grown as one of the leading manufacturers
we have over the years realized the worth of our valued
customers and their needs our company has a very client
centric approach and to provide our clients with the best
services we impart after sale support to them.
Provide good service after selling the goods or
machine.

These are the following sale support that we

provide
23
 Operational training we have over the years gained
a lot of experiences and excellence in industry
Reputation in market
Strong focus on quality
Highly reliable and accurate range of product
Timely delivery
Headed by excellent professionals
Indian standard machine
Competitive price (with discount)

Why Us?
We have over the years gained a lot of experiences
and excellences in the industry
Reputation in market
Strong focus on quality
Highly reliable and accurate range of product
Timely delivery
Provide time to time service
Competitive price
Having stable quality, strong Services, high efficiency
and other features, our products have obtained
customers confidence.

24
Quality
Provide service after sale the machine or any
freezer
Such as milk chiller, water cooler, deepfreeze etc.
Provide one year free service with customer
satisfaction.
Contact to customer time to time about the know for his
Satisfaction and his experience after purchase machine.

25
OBJECTIVE
OF STUDY

26
TOPIC NO 3
3. OBJECTIVE OF STUDY
To study about the cost reduction program and
process of the cost reduction.
To understand the tools and techniques use for the
cost reduction.
To study about the cost reduction components of
printing industry. To study and suggest measures to
reduce cost in printing industry.
Cost reduction in per unit result in productivity and it
is an indicator of efficiency Cost reduction builds a
balanced wage structure and suitable working
conditions that turns in improving labour-management
relationship.
Overall reduction of cost will benefit the company in
competitive environment.

27
REVIEWOF
LITERATURE

28
TOPIC NO 4
1. Review of literature

Every large organization should have a cost

reduction program:
While it could be true that (1) expenditures may
not be excessive and in fact may be at the ideal
minimal level and (2) individual organization units
observe normal concern in controlling expenditures,
there is a managerial advantage in having a cost
reduction program which in its operation is formal
and systematic.
Business and industrial organizations over many
years have developed and relied upon sophisticated
cost reduction programs.
The purpose of this report is to recommend the
formal organization of cost reduction program

29
Merits of Cost Reduction:
1. The reputation and goodwill of concern enhances
it.
2. Quality goods and services offered to the
customers.
3. Cost reduction in per unit results in productivity
and it is an indicator of efficiency.
4. Cost reduction builds a balanced wages structure
and suitable working conditions that turns in
improving labour management relationship.
5. Customer gets cheaper item in minimum price.
6. Sales increases by the cost reduction in production
dept.

Demerits of Cost Reduction:

1. The quality of the production of concern may
become weaker by cost reduction scheme.
2. The cost reduction scheme may be find costly to
follow and implement to a small concern.
3. Some concerns may ignore the concept of cost
reduction because they do not want to change their
age old product designs through which they are
earning revenue over the years.

30
RESEARCH AND
METHODOLOGYY

31
TOPIC NO.5
RESEARCH AND METHODOLOGY
Meaning of Research:
A careful investigation or enquiry through search for
new facts in any branch of knowledge.
Redman and moray define research as a systematic
effort to given knowledge.
Research methodology is a way to systematic solve
the research problem. It may be understood as a science
of studying how is done scientifically. In it we study
various steps that are generally adopted by a researcher
in studying his research problem along with logic behind
them.
Research process is as follows:
1. Define research problem
2. Research Design
3. Collection of data
4. Analysis of data
5. Data interpretation

32
 DATA
ANALYSIS
AND
INTERPRETAT
ION

33
TOPIC NO. 6
DATA ANALYSIS AND INTERPRETATION

Data Analysis
Techniques uses by the organ, for
cost control
and cost Reduction: -

Following technique by the organization to the

purpose of the cost control in the organization as a
whole

1. Use of New Technology: -

In the organization, sometimes the out
dated technology the price of the production. Hence
company management time to time changes the
technology and they installed this is new technology
and automatically the cost will be reducing.

34
2. Selection of supplier: -
As per the opinion of the management the
selection of supplier that is provider of the row
material is also one important factor which is
affecting and the cost of the production. If the
supplier is selected which is too far from the unit
automatically the transportation c cost is increased
and this ultimately effect of the price of the product.
Hence company management is too careful regarding
proper section of the supplier.

3. Analysis of Labour cost: -

If the company management wants to
reduce the cost of the overall production. They also
used the analysis of labour cost techniques it means
that if sometimes the unnecessary workers are
worked on the particular process. Automatically the
cost of that process in increased as against this if the
only necessary worker is appointed on the particular
process.

4. Analysis of Transport cost and

comparison: -
If the transport cost because fame
transporters rote is too high and this is not affordable
to organization at that time the company
35
 management try to select the new media for the
transportation which reduce the cost of production.

5. Control on Wastage: -
Wastage is also major factors which increase
the cost of production. Hence now a say's the
management of any organize is try to
Decrease the wastage in the overall process,
which happen during the after consumption of this part,
immediately the row material supplied to the workers.
This automatically reduces the cost and unnecessary
wastage in the organization.

6. Analysis of Labour Efficiency: -

As per opinion of the management labour
efficiency is also affected on the cost of the production
so management of the organization is always try check
the efficiency of the labour. It the labours efficiency is
work automatically the unnecessary cost is saved and
automatically the cost reduced of the overall product
cost as against.

7. Reduction Unnecessary Staff :-

The company management is also proving
on the special affection on the decrease in the
unnecessary office staff, as per the pinion of the

36
 management. If the unnecessary staff is there
automatically this burden imposed on the cost of
production.

8. Control on light Consumption: -

As per the opinion of the management
they always provide the special affection on the proper
use if light. Because in the factory is overall process are
happened on the light and it the consumption is not
proper automatically the cost of the overall production
in increased but as against this if proper consumption is
made automatically the cost production will be
reducing.

9. Proper Training to worker: -

Management told that if the proper training
time the worker, worker makes the work into efficient
manner, but as against this is the proper training is not
given the certain process will be late and
automatically the cost of the productions increase.

10.Appointment proper Labour Force: -

As per the opinion the management if the
proper worker is appointed on the particular process
automatically the process is made immediately and
there by the cost of that process is reduced as against

37
this if the proper worker is not appointed the process
will be it is adversely effect on the cost of production.

11.JIT
Just- in time techniques are also used in the
organization for the cost control by the management o9f
means that the purchase is made as per the used in
production process this decrease the material handling
cost this is very important technique of cost control
which is used by the various organization.

12.Preparation of Budget: -
As per the opinion of the management they
prepare a budget of any process in the overall
organization, they say that this is also useful for the
propose of cost control in the organization. If the
budget is made on the past performance
automatically this is used for the period and thereby
control is made on overall cost of various processes.

13.Other Some Measures Taken for Cost

Saving: -
1. By obtaining materials through lower cost
2. Development of new sources
3. Price negotiation with vendors

38
 4. Using modern technique like cost price
analysis to determine the right or reasonable
price for a material.
5. By managing tax payable.
6. By reducing cost of packing
7. By optimizing transportation
8. By ensuring the right quality of materials.
9. By value Analysis
Above all techniques are used by Maharashtra
Refrigeration for the purpose of the cost control and cost
reduction. As per the information given by the manager
of the organization they are always try to reduce the cost
of production because as per opinion the cost of
production and the demand to the products of the
organization has opposite. It means that if the cost of
production is increased automatically the demand to
the production is decreased.
Therefore, the organization is always tried to
make the research and make the proper evaluation of
the all process. It is useful for the organization if there is
any drawback in the any stages of process or if there is
much more wants as compare to normal units or if the
machinery is not well they are try change this machinery
immediately.
The industry is always with tone to the recent
change and a new technology which is coming to those
sectors.

39
 Steps used by the organization for the purpose of
material control: -
AS we have seen is the costing they, generally cost
of production is nothing but the overall total of material
labour and O.H it means they the organization has a
much to more change on particularly above three
elements generally cost structure of any commodity are
as follows.

40
Define Research Problem

A Search process the first and foremost step

happens to be that of selecting and properly define
a research problem.
Techniques involve in defining a problem-
1. Statement of the problem in general way
2. Understanding the nature of the problem
3. Surveying the available literature
4. Developing the idea through discussion
5. Rephrasing the research problem working
proposition

Research Design:
Research design is an overall plan or scheme
prepared by the research for executing the business
study. It is an important stage in the process of
conducting.
Research as it facilitates systematic work on the
research project. It acts as a guide for the
researcher to work step by step on his research
study. It is necessary as it facilitates the smooth
conduct of the research.

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Definition of research design
“Research design is the logical and systematic
planning and directing of a piece of research”

METHODS OF DATA COLLECTION:

The task of data collection begins after research
problem has been defined and research design plan
chalked out. While deciding about method of data
collection to be used for this study, the researcher
should keep in mind two years of data collection viz.
Primary and secondary.
After the research problem has Ben defined the
important step is to collect and analyze the data, the
researcher has to decide whether he has to collect
primary data or secondary data. The method of
collection of data is very important in the project. Two
types of data were collected in this project.

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 1. PRIMARY DATA:
There are various methods of collecting the primary
data i.e. Interview method, questionnaire method,
observation method etc. In this case it is the study of
single organization so personal interview method is
used for collecting the necessary information and data.
For this purpose, at the time of every visit personal
interview of the managing director, CEO, Finance
manager, Source of financial analysis history of
organization etc. And other relevant issues are
discussed and the required information is collected and
inserted at appropriate place in this project report.
The researcher has selected the personal interview
questionnaire method for collection of data.

1. SECONDARY DATA:
This study is based on land figure for which secondary
sources are also used for collecting data and information
for this project. The secondary data consist of:
1. Information about Maharashtra Refrigeration.
2. Theoretical base regarding financial analysis is
various books available in library.
3. This data was gathered through the owner of the
firm.

43
For the collection of secondary data the researcher
has used journals, business magazines and the help of
various websites.

44
 OBSERVATION
AND FINDINGS

TOPIC NO.7
45
Observation and Findings
1. There are various types of factories and companies
to study about their various cost components like,
purchase of material cost, pricing decisions, selling
and distribution costs, overhead costs etc.
2. At the time of studying about that various cost,
department and officers trying to reduce costs by
different way and increase the profit.
3. Cost reduction in assembling the freezer includes,
how to increase production incurring less
expenditure.
4. To identify the material and expenses easily.
5. To make apportionment of similar items of
expenses on reasonable basis.
6. How to improve the quality of product including
less expenditure.
7. To makes plan about time and money.
8. To prepare the budget and give idea to owner of
where to focus their attention to achieve cost
reductions.

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Observation of Customers
1. Customers are interested in getting most benefit in
less cost.
2. Their interest in quantitative and qualitative
product.
3. They limit, so suppliers needs to improve in
production techniques for satisfaction of the
customer.

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 Conclusions
and
suggestions

TOPIC NO.8
Conclusions and Suggestions:
48
 If you want to reduce costs in your company, you can
do it by yourself.
There are cost-reduction opportunities in every
department identifying and implementing these cost
reductions requires the enthusiastic co-operation of
people in sales, finance, engineering, manufacturing,
quality assurance, purchasing, facilities, and human
resources. Even if you still need help the people and
probably the finance organization. You have to help
from the people who will make it happen.
Senior management support will help to make the cost
reduction effort successful. If your interest in cost
reduction is the result of a directive from the
organization’s chief executive, you already have the
senior-level support you need.
If your support from other cost-reduction team
members, but it the chief executive in on board, others
will be more enthusiastic about supporting the effort.
The best way to identify and implement cost reductions
is to build a team with one or two people from each area
who believe in the mission.
This team should be made up of people who are already
in the company. You don’t need to hire more people for
this (infect, a recurring theme throughout this book will
be to keep the headcount as low as possible).

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 QUESTIONNARIE

TOPIC NO.9
Questionnaire
50
1. What type of products do you generally make?
Answer- water cooler, deepfreeze, bottle cooler.
2. Do you have your own factory premises?
Answer- Yes.
3. What types of materials commonly use?
Answer- compressor, still, puff.
4. What are your payment modes?
Answer- cash/cherub
5. Are you happy with the investment?
Answer- Yes
6. Are you satisfied with the ongoing technologies or
would you like to upgrade them?
Answer- Yes.

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BIBLIOGRAP
HY

52
 TOPIC NO.10
BIBLIOGRAPHY AND WEBLIOGRAPHY
BIBLIOGRAPHY –
For the preparation of the project report following books and website
were referred.
Text Books of cost and management Accounting –S.M Imandar

WEBLIOGRAPHY –

▪ www.Google .com
▪ www.Wekipedia.com
▪ www.Yahoo.com
▪ www.Itinda com
▪ www.G.Mail.com
▪ www.msn.com
▪ www.rediff.com
▪ www.Bank poclerc.com
▪ www.amodinadustries.co.in

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