The total costing is under the purview of head office in kolkata. Emami produces 500-1000 units on an average.

. Batch Costing Each batch is termed as bomb and has a batch & identity Code

Cost Budget

They take into consideration WIP costs which includes overhead costs(labour cost, maintainence cost upto 8%), packaging costs, costs including ingredients etc.

Batch costing is used when articles are produced in definite batches & kept in stock. When Certain characteristics of goods are uniform. Applicability of Batch Costing The capacity of units is less than the number of units produced.

Costs

Setting up costs

Carrying Costs

Where, A= Total quantity demand in a specific period. C1= Holding Cost per unit period. C2= Set up cost of each batch.

Where, D= Annual Demand of the product. S= Setting up cost per batch. I= Annual rate of interest. C= Unit cost of production.

Identification

Budget

Production Planning

Operational Efficiency

Expensive

Clerical errors

General Policy : provisions of the Companies Act, 1956 and the Accounting Standards notified in Companies (Accounting Standards) Rules 2006, to the extent applicable. Fixed Assets : They are stated at cost less Depreciation. Interest and other financial charges on loans borrowed specifically for acquisition of capital assets are capitalised till the start of commercial production. all pre-operative and trial run expenditure (net of realisation, if any) are capitalised. Intangible Assets : The intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. Depreciation and Amortisation Tangible Assets : straight line method, except for the assets of Vapi, Dongari and Masat units for which depreciation is provided on written down value method, at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956

Investments: Long Term Investments are stated at cost. Current Investments are stated at cost or fair value whichever is lower. Diminution in value of long term investments other than temporary in nature is charged to Statement of Profit & Loss. Inventories : The inventories are valued at cost or net realisable value whichever is lower except for work in progress and advertising material which are valued at cost Voluntary Retirement Scheme Expenditure : incurred on voluntary retirement scheme is charged to profit in the year in which it is incurred. Sales : It includes duty drawback, license premium on exports, Sales Tax and are recorded net of Trade discounts and other rebates. Excise duty: payable on products is accounted for at the time of despatch of goods from the factories and is included in stocks held at the year end.