Cost and Management Accounting Analysis of Furniture Industry – Coursework – ggsingla
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Cost and Management Accounting Analysis of Furniture Industry
Cost and Management Accounting Analysis of Furniture Industry[pic 1]A Project Report Submitted in partial fulfillment of the requirements for the award of theDegree of     Master of Business Administration    Vinod Gupta School of Management, IIT KharagpurByGaurav Singla – 15BM60065Industry Visited: Steel Raj Furniture shopAddress:  Kharagpur, West Bengal                                                                                                                     Indian Furniture IndustryThe furniture industry in India is considered as an “unorganized” sector, with hand craft production accounts for about 85% of the furniture production in India.The furniture sector in India only makes a marginal contribution to the formation of GDP, representing just a small percentage (about 0.5%).Globally, domestic furniture accounts for 65 per cent of the production value, whilst corporate/office furniture represents 15 per cent, hotel furniture 15 per cent and furniture parts 5 per cent. The furniture industry employs a total of around 300,000 workers.      [pic 2]   [pic 3]The total production of furniture in 2001-02 (according to Annual survey of Industry) was USD 3580 million.Foreign trade picture with regard to furniture is not very impressive. In 2000, India ranked 48th among furniture exporters and 49th among importers. This situation can be explained by the high import duty applied, and on the other hand, from the low technological level of Indian companies and the local tastes and traditions that influence the style of the products offered, making them difficult to export.

Structure of the industry [pic 4]Type of Process Used – MANUAL JOB COSTING Job Costing and ProcessesIt is the process of making customized products and tracing/assigning costs to them. Direct materials and direct labor are traced to individual jobs and production overhead is allocated. The present case of furniture shop falls in the category of job costing. Cost Object. Job itself (making a piece of furniture) Cost Driver Direct labor hours. Cost Allocation Base. A single cost pool of direct labor hours is used. All the indirect costs are allocated based on this cost driver. Direct Costs of a Cost Object (Furniture Item) Costs related to a particular cost object (furniture) that can be traced to that cost object in an economically feasible (cost-effective) way. This fall into two categories:- (a) Direct Materials Four types of wood are used by the shop as:- 1. Teak wood 2. Sal wood 3. Pinewood 4. Plywood (b) Direct Manufacturing Labor. (i) Carpenters (ii) Joiners and Helpers Indirect Costs of a Cost Object (Furniture Item) These costs are related to a particular cost object that cannot be traced to that cost object in an economically feasible (cost-effective) way Indirect costs are allocated to the cost object using a cost-allocation method. These are also called manufacturing overheads. The following indirect costs are incurred by Furniture Museum in making the utility furniture:- (a) Indirect Materials. The following indirect materials are used:- (i) Sand Paper (ii) Wood Polish (iii) Varnish (iv) Nails, hinges, glue, fevicol, screws etc (v) Paint (b) Indirect Labor: Manager Salaries, 3 in number.

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(2015, 11). Cost and Management Accounting Analysis of Furniture Industry. EssaysForStudent.com. Retrieved 11, 2015, from
“Cost and Management Accounting Analysis of Furniture Industry” EssaysForStudent.com. 11 2015. 2015. 11 2015 < "Cost and Management Accounting Analysis of Furniture Industry." EssaysForStudent.com. EssaysForStudent.com, 11 2015. Web. 11 2015. < "Cost and Management Accounting Analysis of Furniture Industry." EssaysForStudent.com. 11, 2015. Accessed 11, 2015. Essay Preview By: ggsingla Submitted: November 2, 2015 Essay Length: 1,201 Words / 5 Pages Paper type: Coursework Views: 451 Report this essay Tweet Related Essays Subway Marketing Management Case Analysis Marketing Management Case Analysis Subway® Sandwich Shops Abstract Subway® Sandwich Shops was founded in 1965, and has been franchised into the hearts and stomachs of 1,199 Words  |  5 Pages Global Success and the Role of Strategic Steering and Management Accounting Systems Global Success and the Role of Strategic Steering and Management Accounting Systems 1. INTRODUCTION Research approach The objective of the present study is to evaluate 9,804 Words  |  40 Pages 2 Cost Management Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets 1,243 Words  |  5 Pages Management Accounting - Cost Classification COST CLASSIFICATION ASSIGNMENT To classify the various costs would first of all require a definition between the two types of accounting that practically all businesses 322 Words  |  2 Pages Similar Topics Strategic Management Accounting Cost Management Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter

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Management Accounting Analysis Of Furniture Industry And Cost Object. (July 10, 2021). Retrieved from https://www.freeessays.education/management-accounting-analysis-of-furniture-industry-and-cost-object-essay/