This website uses cookies to ensure you have the best experience. Learn more

Cost Accounting Case Study

2627 words - 11 pages

Table of Contents

1. The Raymond Group – An Introduction.............................................................................2 2. Applications ........................................................................................................................5 2.1. FLUCTUATIONS IN RAW MATERIAL PRICES..................................................5 2.2. DECISION REGARDING LOCATION...................................................................7 2.3. Fixing of SALE price using Break Even Point Analysis...........................................9 2.4. MAKE OR BUY DECISION – POWER ................................................................11 2.5. MANUFACTURING DECISION ...view middle of the document...

It is India’s leading producer of worsted suiting fabric. It enjoys a 60% market share in India. It further exports its suitings to more than 50 countries including the USA, Canada, Europe, Japan and the Middle East. All its products are marketed under the flagship brand "Raymond". Products are distributed through about 310 exclusive retail shops in India and surrounding countries, 30,000 multi-brand retail outlets and over 100 wholesale distributors.

Denim – set up in 1996 produces 20 million meters of differentiated Ringspun denim per annum. It is one of the world’s very few specialized manufacturers of fancy denims focussing on niche products for the world’s leading Jeans-wear brands. It supplies denim to trendsetters like Levis, Pepe, Zara, Gap, Tommy Hilfiger, Lee Cooper and AZDA amongst others.

J.K Files & Tools - The Engineering Files & Tools division is the world’s largest producer of steel files with 90% market share in India and about 30% market share in the world.

Be: - The Designer Wear division is an exclusive pret-a-porter range that houses designs by some of the finest Indian designers like Rohit Bal, Raghavendra Rathore, Rajesh Pratap Singh, Priyadarshini Rao etc. Be: offers an eclectic mix of formal,

office and evening wear for men and women, in western, ethnic and fusion styles along with accessories.

Million Air - The Aviation division was launched in 1996 to provide air charter services aimed mainly at the corporate travel segment. It has a regular clientele of over 421 top companies in India and abroad. The division operates a fleet of three helicopters and one executive jet.

Raymond Apparel Ltd. – This Company has three highly esteemed menswear brands in its portfolio:

Park Avenue – It is one of the most respected brands in the formal menswear category in India. It provides complete wardrobe solutions for men with a collection of suits, jackets and trousers. Its product portfolio includes: Shirts, Trousers, Suits, Jackets and Accessories.

Parx – launched in 1999, this is the semi-formal clothing line and includes: Shirts, Trousers, Denims, Polos and Outerwears.

Manzoni – This is the most exclusive and premium brand in the Raymond Portfolio. Its product portfolio includes: Shirts, Trousers, Suits, Jackets and Accessories.

J.K Ansell Ltd. – J.K. Ansell Ltd. (JKAL), the manufacturers and marketers of KamaSutra condoms is a 50:50 joint venture between the J.K. Investo Trade (India) Ltd. and Ansell International, the world leader in latex products such as gloves and condoms. Prior to the formation of the joint venture in 1996, the condom division was a part of J.K. Chemicals Ltd., a subsidiary company of Raymond Ltd. The division commenced operations in 1991 and launched KamaSutra the same year. JKAL has a condom manufacturing plant at Aurangabad in Western India that manufactures 250 million pieces per annum. Today, J.K. Ansell is the second biggest player in the...

Other Papers Like Cost Accounting Case Study

Cost Accounting Essay

3492 words - 14 pages when asset fully depre. EVA的好坏处:Ad:real underlying increase in the value of shar/h`s wealth; make manage focus in optimising the co`s capital mix;study-closer correlation with share price than conventional profits; Disad: complex RI; cost of capotal imprecise; if capital calculation based on book value, not market value,so no account for opportunity cost of invest; capital base may fluctuate from year to year distorting EVA; may discourage long

Cost Accounting or Cost-Volume-Profit Accounting Essay

990 words - 4 pages ACC501 Cost Accounting.txt Cost Accounting or Cost-Volume-Profit Accounting ACC501 - Accounting for Decision Making Module 2 - Case Abstract This paper contains a brief overview of the current primary accounting standard GAAP but also explores CostVolume-Profit analysis and Cost Accounting. In the 1980s accountants and financial managers embraced technology and became the basis for the Personal Computer’s (PC) explosive expansion. The

Abc Cost Accounting

521 words - 3 pages Wilkerson Company Case: Wilkerson Company In the case, we have review the allocation of overhead by using Traditional Cost Accounting (TCA) and Activity Based Costing (ABC) in a manufacturing company named Wilkerson. Through the case study, I have learnt the importance of Cost Accounting System, the principles of TCA and ABC, the advantages and disadvantage of ABC, the practical use of ABC and cost reduction using ABC. 1. Importance of Cost

Cost Accounting Issue

2961 words - 12 pages relating it to a practical scenario (case study) in Uganda. Your argument should be presented inform of a report addressed to: Director, cost concern international (Uganda chapter) P.o. Box 17 Kampala Important Response Information: i. The report must be 6-7 (six to seven) pages, well-edited. ii. Strictly use Times New Roman fontage, Font size 12, and 1.5 spacing iii. You must sign the report and provide your phone contact. iv. The

Asmt for Cost Accounting

1355 words - 6 pages /Code_of_Ethics_Sept_2009.pdf, accessed 17 March 2012. [2]Horngren, Datar & Rajan (2011), Cost Accounting: A Managerial Emphasis, 1st Australian edition, Pearson Australia, p.18. [3]Bhimani, A., ed. 2006, Contemporary Issues in Management Accounting, Oxford University Press, New York. [4]Martinson, O. 1994, Cost Accounting in the Service Industry, Institute of Management Accountants, Montvale, NJ. [5] Wahah, The successful experience in the home of Wahaha, viewed at 20 March 2012. [6] Donald Kagan, Open Yale Courses: The history of GM Cooperation, 23 May 2010, viewed at 22 March 2012.

Cost Accounting Homework Solution

3051 words - 13 pages × 3,000,000 units). Total depreciation cost of $6,000,000 would remain unchanged. 6. In this case, equipment depreciation is a variable cost in relation to the unit output. The amount of equipment depreciation will change in direct proportion to the number of units produced. (a) Depreciation will be $2 million (2 million × $1) when 2 million units are produced. (b) Depreciation will be $3 million (3 million × $1) when 3 million units are produced. 3

Key Issues in Cost Accounting

3259 words - 14 pages -is-variance-analysis/ Azoulay, Arik (2001). The use of the transition cost accounting system to compare costs of treatment between Canada and the United States: Methodological issues based on the case of acute myocardial infarction. M.Sc. dissertation, McGill University (Canada), Canada. Retrieved May 22, 2012, from ABI/INFORM Global.(Publication No. AAT MQ70374). Bragg, S. (2010, October 6). What is variance analysis. Retrieved from

Cost Accounting Ch. 6 Solution

3856 words - 16 pages budgeting. 1.​This question links to the ABC example used in the Problem for Self-Study in Chapter 5 and to Question 5-23 (ABC, retail product-line profitability). Activity Cost Hierarchy Soft Drinks Fresh Produce Packaged Food Total Ordering ​$90 ´ 14; 24; 14 Delivery ​$82 ´ 12; 62; 19 Shelf-stocking ​$21 ´ 16; 172; 94 Customer support ​$0.18 ´ 4,600; 34,200; 10,750 Total budgeted indirect costs Percentage of total

What Is The Importance Of Cost Accounting?

1107 words - 5 pages principles provide for uniformity, reliability, relevance and comparability. This basically means that GAAP strives to sustain correct accounting methods to promote precise financial statements. One of the facets of cost accounting that is not regulated by GAAP standards is cost data that is used for decision making. Managers have some leeway in this regard, as it allows them to determine how to classify individual costs on a case by case basis, as

Chapter 2 Managerial Accounting and Cost Concepts

4862 words - 20 pages Chapter 2 Managerial Accounting and Cost Concepts Solutions to Questions 2-1 Managers carry out three major activities in an organization: planning, directing and motivating, and controlling. Planning involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. Directing and motivating involves mobilizing people to carry out plans and run routine operations. Controlling

Cost Accounting

848 words - 4 pages relationship among activities, costs and products (Johnson). One of the disadvantages of ABC is that it takes time and money to implement. The costs to maintain an activity-based costing system are high as well. Another disadvantage is the fact that the reports that are generated from an ABC system do not conform to generally accepted accounting principles. A company that uses activity-based costing should have two cost systems. One system (ABC

Related Essays

Chpt 4 Study Guide Cost Accounting

2786 words - 12 pages resources of the organization.   2.            Study pages 98-100.   3.            LO 4-1 lecture slides. Note: Look for the image of your instructor within the slides. Clicking on his smiling face will start a short lecture.   4.            Q1: Define cost pool, cost tracing, cost allocation, and cost allocation base. Cost pool––a grouping of individual indirect cost items. Cost tracing––the assigning of direct costs to the chosen cost

Case Study: On Costing Systems And Cost Control

2026 words - 9 pages costs increase shall probably object, as in the case of the pipe fixture department, complaining that they cannot remain within budget, while those whose costs decrease shall probably remain silent.However, if the new rates were indeed proven to be still high compared to the norms, or to other departments' rates for doing the same work, then the reasons would have to be investigated and cost control measures would have to be strictly enforced on

Accounting Principles Apply To Business (Case Study)

1729 words - 7 pages Zealand remained the same, while in Australia an additional 3 stores were added during the year. (Hallenstein Glasson Lifts Profit and Dividend. 2006) According to this graph, it is reasonable to conclude that the credible achievement on Hallenstein Glasson is the result of strong management together with the successful market strategy. Profitability Analysis On the $183.653 millions of sales reported by the company in 2005, the cost of goods sold

Cost Accounting Essay

1364 words - 6 pages [pic] | | COST ACCOUNTING AREA: CONTROL IMBA NUMBER OF SESSIONS: 20 PROFESSOR: SALVADOR CARMONA □ Ph.D (Accounting). Universidad de Sevilla. □ Last version, November 2006 COURSE DESCRIPTION A cost accounting system collects and classifies costs and assigns them to cost objects. The goal of