Various Cost Control Techniqes

Topics: Cost accounting, Costs, Bank Pages: 37 (10879 words) Published: June 3, 2013
A PROJECT ON

VARIOUS COST CONTROL TECHNIQUES AND USE OF COSTING IN THE DECISION MAKING OF BANKING INDUSTRY



INTRODUCTION

Cost is the term with which every business organization is well versed. To determine the selling price of any product or service it is necessary to ascertain the correct cost till the point of sale. To ascertain the correct cost of any product it is necessary to prepare and maintain proper cost accounting records according to the size and complexity of the business carried on by the organization. In this current business scenario of ever increasing competition and necessity to reduce the cost the companies should follow the strict cost control techniques to reduce the cost of production of goods and services. In any business organization management decision-making is the most important and crucial part. In some of the decisions some costing techniques comes to an immense use, which is why various costing techniques are getting immense importance now as days.

HYPOTHESIS
Cost Accounting field is fairly developed now. Various Manufacturing industries employ costing techniques to determine the cost of the service and also to know how the organization can use Cost Control Techniques to control and reduce the cost of production. In all over the world the Service Sector is developing in leaps and bounds. In India the share of Service Sector in total Gross Domestic Product is near about 50%. In such situation we can think and can apply various Costing Techniques in Service Sector also, to know exactly what is the cost of providing the service, how it can be controlled and reduced. My hypothesis ofthe project is

" We can use various costing techniques in Service Sector in general and Banking Sector in particular, in their decision making."

OBJECTIVE OF THE STUDY
The objectives of the study are illustrated as under:
1.To study the various techniques of cost control.
2.To study how costing helps in the decision making.
3.To study the factors relevant for decision making
4. To study how can we use costing techniques in rapidly growing service industry. 5. To study how banks use various techniques of costing in the decision making process.

SCOPE OF THE STUDY
TEMPORAL SCOPE
The study is conducted for the period 2004-2005.

GEOGRAPHICAL SCOPE
The study are is limited to Pune District only, but with some study the findings can be applied to anywhere in the world.

OPERATIONAL SCOPE
The data was collected by conducting the interview of the Bank officer of Saraswat Co-operative Bank.

COMPANY PROFILE
INTRODUCTION AND PROFILE OF
THE SARASWAT CO-OPERATIVE BANKS LTD.

Saraswat Co-operative Bank is one of the leading banks in India. The bank has achieved this despite being from co-operative sector. According to the rankings done it is securing the status as THE NUMBER ONE BANK IN ASIA IN CO-OEPRTlVE SECTOR from last three years.

The bank has been established on registered on September 14, 1918. Its registered and corporate office is located at Mumbai. The bank is securing 'A' Audit Classification constantly from 1933. The current Chairman of the bank is Shri. R. K. Patkar.

The area of Operations of the bank is limited in States of Maharashtra, Karnataka, Goa, Madhya Pradesh, and Gujrat; National Capital territory of Delhi, Union Territories of Daman &Diu....
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