Cost Accounting

Project Requirements
Take any Company, Large Scale, Small Scale Public or Private
Meet with the Production or Finance Manager and Identify the following:
1. Type of Business Merchandiser, Manufacturers or Service
2. Following Job Order Cost System or Process Costing
3. Identify its Direct Material Costs, Direct Labor Costs and FOHs
4. Differentiate between fixed and variable costs. How are variable costs
estimated? Any formal method?
5. Calculate Order point (using Usage, lead time and safety stock)
6. Calculate EOQ (using number of units, cost of ordering and cost of carrying)
7. Identify whether inventory is Just in Time or not.
8. Does the company have any scrap, spoiled or defective goods? How are
they accounted for ? (as costs or separate)
9. Details of Payroll type of labor and their pay ( hourly or piece- wise).
Minimum levels of pay
10. What taxes are to be paid by the company and labor. Benefits given to the
labor
11. Distribution of payroll and taxes.
12. Estimating a months or years budget (using units to be sold and beginning
and ending levels of production)
13. Cost Volume profits.
14. Break Even Analysis.
15. Applied and Actual costs for the year .
In case of process costing
1. Identify the departments
2. Estimate a Statement of summary of cost of production
3. Any units lost or gained in production.
Requirements with the report
1. Prove of interview ( video or voice recorded) and / or a visiting card.
2. Contribution list of each member of the group