cost and management accounting

1. Prepared
by
•Rasadiya
mehul.
Sub:
Cost Mgt.Account

2. Company history Essar Oil Ltd.
- Essar Oil Limited was incorporated as a
Public Limited Company under the Companies
Act, 1956 on 12th September, with the main
objective to provide
Development, Exploration, Production and
related Services in the oil&gassector.

3.  The main promoters of Essar Oil Limited are Essar
Investments Limited, Essar Shipping Limited, South
India Shipping Company Limited, Essar Gujarat
Limited and a foreign co-promoter, Prime Finance
Company Limited, and other NRI's associates and
friends.
 EOL was engaged in preliminary activities relating to
bidding for oil & gas fields as well as advising the
Energy and Offshore divisions of Essar Gujarat
Limited on technical matters relating to their
operations.
- The Company is a member of Essar group

4. COMPANY PROFILE
Essar Oil
Type Public company
Traded as BSE: 500134
NSE: ESSAROIL
Industry Oil and gas
Headquarters Mumbai, India
Key people Ravi Ruia, Chairman
Lalit Gupta, MD,CEO
Products Petroleum, fuels, natural gas
and other petrochemicals

5. Revenue 481.65 billion (US$8.8 billion)
(2011)
Net income 21.55 billion (US$390 million)
(2011)
Total assets 210.84 billion (US$3.9 billion)
(2011)
Owner(s) Essar Group
Parent Essar Energy plc
Website www.essar.com

6. Essar Oil Plant

7. Essar Oil Store..

8. Cost Accounting
 cost accounting is that part of
management accounting which
establishes budget and actual cost of
operations, processes, departments or
product and the analysis of
variances, profitability or social use of
funds.

9. Cost Sheet
 It serves as a means of accumulating
the manufacturing costs-direct
materials, direct labor, and overhead
costs-chargeable to the job or
department and as a means of
determining unit costs.

10. Methods Of Costing
 Job Costing - This is done, as the name suggests, on
job works which may differ from case to case basis.
 Batch Costing - This is done for large contracts. Such
businesses need not maintain costs separately as
financial accounting will indicate the costs and
expenses.
 Process Costing - This is useful when a product passes
through various processes, yielding different by
products of commercial value.

11. Methods of Costing
 Standard Costing: Standard costing means assigning the
expected, budgeted costs to the goods manufactured, the
goods in inventory, and the goods sold
 Marginal Costing: It is a costing technique where only
variable cost or direct cost will be charged to the cost unit
produced.
 Activity Based Costing :Activity based costing (ABC)
assigns manufacturing overhead costs to products in a
more logical manner than the traditional approach of
simply allocating costs on the basis of machine hours

12. Cost sheet
Of
Essar Oil

13. Cost sheet
(Rs crore)
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
Material
consumed 21.05 53863.87 43000.39 34322 34257.315
Prime cost 21.05 53863.87 43000.39 34322 34257.315
FACTORY
OVERHEA
DS
Manufacturi
ng
expenses 40.41 - 679.40 376.48 342.10
WORK
COST 61.45 53863.87 43679.4 34699.35 34,599.41

14. OFFICE &
ADMINISTR
ATIVE
OVERHEAD
S
Administrativ
e expenses 53.55 2662.2 341.23 270.02 210.52
COST OF
PRODUCTI
ON 115 56526.07 44020.63 34969.27 34809.93

15. SELLING
&DISTRIBU
TION
OVERHEAD
S
Selling
expenses .11 1387.36 1311.37 1182.75 879.58
TOTAL
COST 115.11 57913.43 45332 36152.02 35689.51
PROFIT 94.91 134.56 120.06 97.5 96.88
sales 210.02 58047.99 45452.06 36224.95 35786.39

18. Cost sheet analysis
 The company producing 200000 litter oil. Which
total cost incurred is Rs. 50,961,992
 and total sales is Rs. 72,94,36,64
 which implies that the profit being made is Rs.
47,437,738


19. Conclusion
 As we all known this Essar Oil will provide services
better and also its related production also done by
this company.
 This cost sheet base analyses are contribute which
types of services will provide as well as how to
produce its known as this analyses.