Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 34 views

    Cost MGMT

    Uploaded by

    Nandhu Nadhu
    Cost Mgmt

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cost MGMT

    Uploaded by

    Nandhu Nadhu
    34 views27 pages
    Cost Mgmt

    Original Title

    Cost Mgmt

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Cost Mgmt

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views27 pages

    Cost MGMT

    Uploaded by

    Nandhu Nadhu
    Cost Mgmt

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 27

    E4-E5(Management)

    Cost Management

    for BSNL internal circulation only

    Introduction of Accounting

    Financial
    Accounting

    Cost Accounting

    for BSNL internal circulation only

    Management
    Accounting

    Definitions in Cost Accounting


    COST
    COST CENTRE
    COST UNIT
    COST ACCOUNTING
    COST AUDIT
    COST ALLOCATION

    for BSNL internal circulation only

    COST CONCEPTS

    COST APPORTIONMENT

    COST MANAGEMENT

    for BSNL internal circulation only

    COSTING IN BSNL

    References
    COST ACCOUNTING RECORDS (TELECOMMUNICATIONS) RULES,
    2002
    COST AUDIT REPORT RULES, 2001
    CIRCULAR NO. 20 REGARDING REVISED ACCOUNTING PROCEDURE
    & ACCOUNT CODE W.E.F. 1-4-2003
    CIRCULAR NO. 23 REGARDING MAINTENANCE OF COSTING
    RECORDS AS PER COST ACCOUNTING RECORDS (TELE) RULES
    2002.
    for BSNL internal circulation only

    OBJECTIVES

    To maintain Cost Accounting Records according to Cost


    Accounts Records (Telecommunication) Rules,2002.
    To compile Cost Centre wise cost information.
    To allocate/ apportion the cost of service Cost Centre to
    Operation Cost Centers or Service-Products.

    for BSNL internal circulation only

    OBJECTIVES

    To determine the cost of different service-products.


    To identify profitable/non-profitable operation centers.
    To generate data to facilitate fixing tariff.
    To provide essential cost information for strategic decision-making.
    To provide base for cost reduction programme.

    for BSNL internal circulation only

    OBJECTIVES

     To generate cost information for reports for


    submission to Regulatory Authority or other bodies.

     To prepare statements of Cost & Revenue for Rural


    Operation Centers for claim of subsidy/grants from
    Government.

    for BSNL internal circulation only

    COST CENTRE

    Operation Cost
    Centres

    for BSNL internal circulation only

    Service Cost
    Centres

    Allocation & Apportionment


    Operation Cost Centre

    Service Cost Centre

    Services

    Basic

    Mobile

    Internet

    S1(Civil)

    S2(Elec)

    1500

    ------

    ---------

    --------

    --------

    -----

    1200

    ---------

    --------

    --------

    -----

    ------

    1000

    --------

    --------

    -----

    ------

    --------

    300

    --------

    -----

    ------

    --------

    --------

    600

    Allocation

    1500

    1200

    1000

    300

    600

    Apportion

    300

    300

    300

    (-) 300

    (-) 600

    1800

    1500

    1300

    Nil

    Nil

    CP

    for BSNL internal circulation only

    Cost

    Cost of production
    Operation Cost
    Service Cost
    25000

    100000
    4/28/2011

    for BSNLALTTC
    internal
    circulation only
    GHAZIABAD
    kkr

    11

    Operation Cost Centers


    1. SSAs OF METRO DISTRICTS

    OPERATION
    MAINTENANCE

    2. MAINTENANCE REGIONS

    ADMN.
    PROJECT EXECUTION

    3. DATA NETWORK

    INTERNET SERVICES

    for BSNL internal circulation only

    SERVICE COST CENTRES


    CO BSNL

    ADMN PLANNING

    CIRCLE OFFICES

    ADMN

    TRAINING CENTRES

    TRAININGS

    FACTORIES

    EQUIPMENT

    CIVIL DIV.

    CIVIL WORK

    ELEC. DIV.

    ELEC WORK

    for BSNL internal circulation only

    SERVICE PRODUCTS
    (SERVICES OFFERED BY BSNL)
    SERVICE PRODUCTS

    CODE

    BASIC

    01

    NLDS

    02

    ILDS

    03

    CMTS

    04

    TELEX

    05

    TELEGRAPH

    06

    WILL

    07

    LEASED CIRCUIT

    08

    INTERNET

    09
    for BSNL internal circulation only

    COST ACCOUNTING RULES HAVE SPECIFIED


    MAINTENANCE OF NINE SETS OF DIFFERENT
    INFORMATION :-

    1.

    Assets-(service-Product wise)

    2.

    Costs (Cost centre/service-Product-wise)

    3.

    Revenue Service product wise

    4.

    Activity- Operation and Service product wise

    5.

    Statistical / Technical records

    6.

    Captive Consumption

    7.

    Reconciliation of Cost & Financial Accounts

    8.

    Adjustment of Cost Variances

    9.

    Records on Related Party transactions


    for BSNL internal circulation only

    Required Proforma

    PROFORMAS

    STATEMENT

    To be prepared
    /maintained by

    ASSETS REGISTER

    All Cost Centers

    OPERATION

    Operation Cost Centers

    COST STATEMENT

    for BSNL internal circulation only

    Required Proforma

    PROFORMAS

    STATEMENT

    PREPARED/
    MAINTAINED BY

    Part I

    Operation Cost Centers

    Statistical
    Information
    C

    Part II

    Operation Cost Centers &

    Service Costs

    Service Cost Centers

    Statements

    for BSNL internal circulation only

    Required Proforma

    PROFORMAS

    Operation Cost Centers

    Prepared/ maintained
    by

    Apportionment among
    different Service-

    All

    SSAs Consolidation will

    be done at Telecom Circles.

    Products
    and their margin.

    for BSNL internal circulation only

    Financial Accounting

    Financial accounting focuses on reporting to external


    parties. It measures and records of business transactions
    and provides financial statements that are based on
    Generally Accepted Accounting Principles

    for BSNL internal circulation only

    (GAAP)

    Cost Accounting
    Cost Accounting provides information for
    management accounting & Financial accounting.
    Cost accounting measures and reports financial
    and non financial information relates to the cost
    of acquiring or utilizing resources in an
    organization.

    for BSNL internal circulation only

    Management Accounting

    Management accounting measures and reports


    financial & non financial information that helps
    managers make decisions to fulfill the GOALS of
    an Organization

    for BSNL internal circulation only

    COST
    Cost

    is a measurement, in monetary terms, of the

    amount of resources used for the purpose of production


    of goods or rendering services.

    for BSNL internal circulation only

    Cost Centre
    Cost center is the smallest segment of activity or area of
    responsibility for which costs are accumulated. Cost
    Centre may be a Location , or Item of equipment. Such
    as SSAs.
    Operation Cost Centres
    Service Cost Centres

    for BSNL internal circulation only

    COST UNIT

    A single unit of any product or service is known as COST


    UNIT

    Cost Unit: Unit of measurement of goods manufactured.


    (per piece, per kilogram, per metre, per scooter, per
    motor car)

    for BSNL internal circulation only

    COST ALLOCATION
    Cost allocation is the process of charging the full amount
    of cost to a particular costs center. This is possible when
    the nature of expenses of expense is such that it can be
    easily identified with a particular cost centre.

    for BSNL internal circulation only

    Cost Apportionment

    It is a process of splitting up an item of cost and


    charging it to the cost centers on an equitable
    basis.

    for BSNL internal circulation only

    THANKS

    for BSNL internal circulation only

    You might also like