Cost Accounting System of Bpl

Topics: Costs, Cost accounting, Cost Pages: 20 (5546 words) Published: March 22, 2013
1.1 Origin of the Report
This report was originated to make a study about the cost accounting system of Beximco Pharmaceuticals Ltd. for the requirement of completion of 1st semester of Master of Business Administration (MBA) program of the Department of Accounting & Information Systems, University of Dhaka. This term paper was an attempt to acquaint the students with the real world situations so that the knowledge gained from the classroom is further strengthened. As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore it is an opportunity for the students to know about the real life situation through this term paper.

1.2 Background of the Report
The importance of cost accounting and cost accounting information is being increased day by day. It is not only help to reduce cost but also in all kind of decision making. Without analysis of cost accounting information no manager can make effective decision. The cost accounting collects the data, analyze those data and help the managers to make better decision. In accordance with development of new tools and techniques of cost accounting the use of cost accounting information is changing. Managers need to use the cost accounting information in different way from traditional method to evaluate the performance. Developing and accepting the JIT, TQM and other contemporary costing techniques force to manager to change the performance evaluation techniques and requires different cost accounting information unlike traditional labor based information now a day’s which become obsolete. Primarily this report is concerned with cost accounting information by an organization in decision making as well as corporate reporting, the tools and techniques used by organizations and the implications of these in the organization. We select Beximco Pharma to examine the use of cost accounting information and cost accounting tools and techniques used by the company. We emphasize on the implication of using information and technique and examine whether Beximco Pharma use or not that particular techniques and the reason of following or not following based on our queries to respective authority of the company.

1.3 Scope of the Report:
This report is limited to the cost accounting department of the Beximco Pharma including cost accounting systems procedure and techniques. Since Beximco want to achieve top quality along with cost control it uses its cost accounting information very strongly. This report covers only the use of cost accounting information for the purpose of decision making and coporate reporting not overall performance of the Beximco Pharma.

1.4 Objective of the Report:
1. to have a general idea about cost accounting information and its use in decision making. 2. To have clear understanding about the cost accounting system used by Beximco Pharma. 3. Finding out the disclosure of cost accounting information used by the company. 4. To draw a conclusion based on our understanding of Beximco Pharma.

1.5 Methodology of the Report:
The details of the work plan are furnished below:
Data sources The data and information for this report have been collected from both the primary and secondary sources. Among the primary sources, face to face conversation with the respective stuffs of the head office. The secondary sources of information are annual reports, websites, and study of relevant reports, documents and different manuals.

Data processing Data collected from primary and secondary sources have been processed manually and qualitative approach in general and quantitative approach in some cases has been used throughout the study. Data analysis and interpretation Qualitative approach has been adopted for data analysis and interpretation taking the processed data as the base.

1.6 Organization of the Report
This report is divided in to mainly 5 parts. The 1st part is introductory part that...

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.
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