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Topics: Management accounting, Costs, Cost accounting Pages: 15 (2566 words) Published: February 22, 2015
Executive Summary
Cost Accounting System is a branch of managerial accounting concerned with accumulating manufacturing costs for financial reporting and decision-making purposes. It is a process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. The report assemblage involves understanding the significance of applying cost accounting system to the costing techniques. In the process we have come across certain issues that demand special attention as the selection of valuation techniques among the options available. We also verify how smoothly the establish standards and norms comply with the overall cost accounting process of the company. However, while accumulating necessary data for the report preparation we have faced few restrictions such as time constraints, political condition of the country, and limited disclosure of necessary information by management of Aristopharma Limited.

Letter of Transmittal
13nd January, 2014.
Bilkis akter
Assistant Professor
Department of Accounting & Information Systems
Faculty of Business Studies
University of Dhaka.
Subject: Application of Cost Accounting System of “Aristopharma Limited”. Dear Mam,
Here is the report on Application of Cost Accounting System of “Aristopharma Limited” as you assigned us to do. It is a great pleasure for us to submit this Report. We have tried our best efforts to achieve the objectives of the Report and hope that our endeavor will serve the purpose. We sincerely believe that the knowledge we have gathered during the preparation of the report will immensely help us in our future professional life. We thank you for providing us with this opportunity and hope that you will approve our submission cordially.

Faithfully Yours

SIGANTURE
Prosenjit Kumar Das
On behalf of group “Pinnacle”
Batch: 17th, Section:A
Department of Accounting & Information Systems
Faculty of Business Studies
University of Dhaka.
1.0 Introduction
1.1 Objective:
Objectives of the report are given below:
To have a general idea about cost accounting information and its use in decision making. To find out the disclosure of cost accounting information used by the company. To have clear understanding about the cost accounting system used by Aristopharma Limited To draw a conclusion based on our understanding of Aristopharma Limited.

1.2 Scope:
This report is specifically limited to the accounting Segment of determining the cost of Products of Aristopharma including cost accounting systems procedure and techniques. Since Aristopharma wants to achieve high quality along with cost efficiency it uses its cost accounting information very effectively.

2. Company Background
2.1 Selected Company:
As per the Requirements of the Report we have taken Aristopharma Limited, a leading Pharmaceutical Company, for the purpose of analyzing its entire cost Accounting System.

2.2 Company Profile:

Aristopharma Ltd. is a leading pharmaceutical company in Bangladesh. The company started its journey in 1986 with the honest promise of providing quality medicines at affordable prices to countrymen. Its state-of-the-art manufacturing plant, located at Shampur-Kadamtali I/A, 10 km from central Dhaka, is equipped with highly sophisticated and advanced facilities. The facility is planned and designed to meet the local as well as international demand both qualitatively and quantitatively. It started manufacturing sterile ophthalmic products in 2002 and presently is maintaining no. 1 position in ophthalmic market in Bangladesh. Aristopharma's 2nd plant with 66,000 sq.ft. floor area was built in 2010 beside the existing plant to manufacture hi-tech products like inhalers, lyophilized injections, pre-filled syringes, suppositories, insulin & others bio-tech products. Apart from normal tablet...

References: 1. Horngren, Charles T., Datar Srikant M., Foster, G.; “Cost Accounting: A Managerial Approach”, Prentice Hall, Inc.; 12th Edition, 2007.
2. Rayburn, Latricia G.; “Cost Accounting: Using A Cost Management Approach”; Irwin Book Team; 6th Edition, 1996.
3. Hansen, Don R., Mowen Maryanne M.; “Cost Management: Accounting and Control”; South-Western College Pub; 5th edition, 2005.
4. “International Financial Reporting Standard”; International Accounting Standard Board; as approved at 1 January, 2008.
5. http://www.aristopharma.com
6. http://britannica.com
7. http://en.wikipedia.org
8. http://www.bizmanualz.com
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