asha priya project

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  • 7/29/2019 Asha Priya Project




    The information concerning the business enterprise is very helpful to the

    Management to control it in an efficient way. As the other branches like

    financial accountancy and management accountancy, the cost accountancy

    also serves the Important information to the regarding the operating

    efficiency if the business, it becomes very easy for management to lay

    down management policies, to guide management decisions or evaluate

    operating management performance with the information provided by cost


    The management the term operation in business terminology refers to an

    activity of the business. It is very important to study the of the business in

    detail because the entire business Depends on the operation, which it

    performs. Should always concentrate on the efficiency of the operation and

    also the costs associated to the operations. It is very important to control the

    costs associated to the Operations for the enterprises like manufacturing

    companies, companies engaged in The process of extraction of materials from

    earth like, bio energies etc. Generally,, the above-mentioned business enterprises

    depend on the operation that it has to be performed in to produce the final

    output. The cost associated wroth such operations are generally higher. The costs

    are called as The costs Operating costs which are incurred t o perform

    the operation of the enterprise, are called as operating costs.

    The costs are to be accounted for in order to arrive at the total

    costs of operation Or process, which helps in determining the price of the

    final product.Cost Accounting is the classifying recording and appropriate

    allocation of expenditure of the determination of products or service, and

    to the presentation of suitably; arranged data for the purpose of control and

    guidance of management.

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    It includes the ascertainment of the costs of every process, operation,

    service or contract as may be appropriate. It deals with the cost of production,

    selling and distribution It is thus, the provision of such analysis and

    classification of expenditure as will enable the total cost of anyparticular unit of production to be ascertained with reasonable degree of

    accuracy and at the same time to disclose exactly how such total cost is

    constituted (I.e. the value of material used, the amount of labors and other

    expenses incurred) so as to control and reduce the cost. The term Operation

    herein general refers to any activity, which I engaged in converting the raw

    materials into finished goods or the process of producing or extracting the final


    This project is concerned with the operation of extracting the local form the

    underground and the cost associated with that operation. The company produce

    the bio energies from two types namely Open cast energies and underground

    energies More specifically this project focuses on the costs of operations

    in underground mines. In underground mines the company follows various

    technologies to produce the bio energies are as follows.

    Long walls

    BG panels

    Continuous miner

    Side Discharge loaders

    Load Haul Dumpers

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    In hand section the bio energies is extracted entirely with manpower. In

    machine the bio energies Is produced with the help of machines. In energies

    the production process depends largely on machines but it requires some

    skilled manpower also. The study focuses on the machines called side dischargeloaders. For the purpose of the detailed area it was observed. In this the

    bio energies produced with the help of chines called SDLs (side discharge

    loaders0besides hand section. Extraction of bio energies in hand section entirely

    depends on the manpower. The process of extraction of bio energies from an

    underground which is using the technology of hand section is as follows. cleaning

    and other process after which the bio energies can be used. After this process

    the bio energies can be transported to the customers Another technology of

    extracting bio energies is using SDLs is to improve safety, avoid the human

    drudgery of carrying baskets at work apace and also better conservation of

    bio energies. In the where the technology of SDLs is using the bio energies can be

    extracted as follows. Blasting of bio energies with the help of explosives o

    separate it from the machine instead of men can fill the bio energies.

    These machines are called as side discharge loaders (SDLs). After the

    blasting the bio energies SDLs move towards the face, takes the bio energies

    into its basket and comes back(in the same direction without turning back)and

    discharge the bio energies onto a belt. The belt takes the bio energies and dumps

    into the tubs of the tub train and these tubs will bring the bio energies to the

    surface. The capacity of the bucket of the machine is one tone. The time taken by

    the machines it move from the coverage belt to the face where the bio

    energies lift the bio energies into the bucket and to discharge the bio energiesonto the coverage belt is called Lead Time. The lead time takes the major part in

    computing the cost of the production. Shorter the lead time larger the

    production and vice a versa.

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    The process will generally include the following costs:

    1. Wages (filling and time rated)

    2. Wages of other executives

    3. Explosives

    4. Power

    5. Bio energies transportation

    6. Other stores

    7. Sand stowing

    8. bio overheads

    9. Workshop overheads

    10. CSP overheads

    11. Depreciation of mines

    12. Depreciation of common assets

    13. Inters

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    1. Analyze the same worth the turn over the years.


    To determine the cost of each operation involved in a process.

    3. It helps management in making more accurate estimated about the cost ofsimilar jobs to be executed in future on the basis of past records.

    4. Special order concerns manufacture products in clearly distinguishable lossin accordance with special order and individual specification

    5. Each process is designated as separate cost centre and the cost per unitcalculated by dividing the total costs of the process with the total number of

    units produced by the process.


    1. The find out the cost of product at each stage in manufacturing. by

    undertake an item and study the operating cost of the company. to highlight the

    efficiency of operating cost of the company through various parameters.

    2. To make suggestion if any for improving the practical positions of the firm

    regarding operating


    The area of the study was restricted to the bio energies pvt ltd and its operations.

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    Determination of the input required to be introduced in the operation.

    Calculation of the cost of raw materials required to produce one piece of finished

    product. To find out the operating profit ratio. Calculating the operating ratio

    Research methodology

    The study is based on secondary data and examines the total costs vs.

    operating costs. The results are drawn mainly from the sources Secondary data has

    been collected from the various sources such as

    Publications of the company.Business magazines.

    Journal, text books.

    Company websites.

    Annual reports.

    In order to gain information on current processes and operations the area

    chosen for study is the gopalapuram area in khammam district.

    Limitation of the study

    Coverage area was only limited to one bio energies in the Company

    2. The financial data of the energies is limited to one years

    3 .The analyses are based on only monitory information and Monitory factors/

    information are ignored.

    4.While computing number, percentage, the figure was Approximated

    5. The period of study limited only for five year the is from 2007- 08 to 2011-12

    6. The operating cost of the bio energies is confined to the area of gopalapuram

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    The electric power industry provides the production and delivery ofelectric

    energy, often known as power, or electricity, in sufficient quantities to areas that

    need electricity through a grid connection. The grid distributes electrical energy to

    customers. Electric power is generated by centralpower stations or by distributed


    Many households and businesses need access to electricity, especially in

    developed nations, the demand being scarcer in developing nations. Demand for

    electricity is derived from the requirement for electricity in order to operate

    domestic appliances, office equipment, industrial machinery and provide sufficientenergy for both domestic and commercial lighting, heating, cooking and industrial

    processes. Because of this aspect of the industry, it is viewed as a public utility as


    Energy is required for everything that we do, and it is the next important

    thing apart from the food upon which the lives of nations depend. Lack of power