A SIP REPORT ON “A STUDY ON THE ROLE OF MANAGERIAL, ACCOUNTING IN COST CONTROL & PROFIT MANXIMIZATION WITH REFERENCE TO DINESH ENTERPRISES.” SUBMITTED TO SAVITRIBAI PHUL E PUNE UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTERS OF BUSINESS ADMINISTRATION (Specialization in Finance) SUBMITTED BY Rohit Sandbhor (Batch 2020-22) UNDER THE GUIDANCE OF Prof. Neha Shah‘(M Education Trust's SIDDHANT INSTITUTE OF BUSINESS MANAGEMENT Linguistic Minority Institute (Hindi) CratatwTihereen Road, Sucsrbare, Tal. Maval, Dist. Pune - 412 108 (Avprored ty AICTE, New Celt, Recognized ty Government of Maharashtra, Mitte to S.P. Pure Universty) MAAC Accredited Extnat : siddrartnsttitet@[Link] Website : www [Link] Date: CERTIFICATE This is to certify that Mr, Rohit Ramdas Sandbhor is a student of Siddhant Institute of Business Management, Sudumbare, Pune, worked on Project titled “4 Study on the Role of ) Managerial Accounting in Cost Control and Profit Maximization with reference to Dinesh Enterprises ” has successfully completed his Project work in partial fulfillment of Savitribai Phule Pune University Master in Business Administration course for acad nic year 2021-22. bt Ges ial S Prof. Neha Shah . Nadeem Khan (Internal Guide Director, SIBM t ‘Siddant Institute of Business Managemant ‘Suture, Pure 412108DESH ENTERPRISES | [Link].: 1, Santosh Heights, 2nd floor, above AGL } hotel chowk, Py | “Showroom, of Ine 411037 GSTN NO-: -27 AAKP06240512E PP. Apsara theatre, ‘Near 7 fovea INTERNSHIP CERTIFICATE OF COMPLETION AWARDED 7 < Rohit Ramdas Sandbhor ‘This is to certify that Mr. Rohit Ramdas séhabnot student of Master of business Gministration (MBA) of Siddhant Institute. OF Management , Sudumbre, Pune iversity, has successfully complete: ‘summer er internship i in the field of Finance | fom August to 31 Decembey 202 racine s guidance of Mr. Dinesh Oza (Director) Dinesh Enterprises Fo inesh Enterpri ses hom | pinestr a cbaopriete | (Director) LAND DEVELOPER INTERIOR, EXTERIOR, CIVIL § 5¢2010@[Link] APRISE CONTACT No: 9260586022. EMAIL: DINESHENTE!ACKNOWL CHM T welsh to exprom my pratitto fo De, Navloom Klan, Divector af lhl inettule OF Management for providing all the fheitlos require fr completing Hho projet wnt jrevidine sme anopportanity carry eu my dikwortation project aww pant fulfilment fur my MIRA Degree, Vinitially thank my rosourch guide Profs Noha shah for hie untiring dovetion, noble guidance, valuable sugpoxtions and above all continuous eneoumgement, important vote in completion af thin project Whioh haw played nn Rohit Sandbhor MBA (11) FINANCE (2020-2022) Date:- Place: PuneDECLARATION J undersigned hereby declare that the pro Het report on “Astudy on the role of dalion with reference ty Dinesh ibai Phule Pune University wrwards the pastins fulfillment for the award of Master “s degree co academic year 2020-2022, written and submitted me to Savity 'Y 10 the award of any other degsee or diploma course by me, Rohit Sandbhor MBA (ID, Finance 2020. 2022 Date: Place: Punei j { , } INDEX “TORIC | [ PAGENO. | | = -|————ermomcrow i | | i | | 12 7 il | 13 CONCEPT OF MANAGERIAL A SCOUNTING 2 j 14 KEY TAKEWAYS OF MANAGERIAL 2 | ACCOUNTING i Ls IMPORTANCE OF MANAGERIAL 3 | ACCOUNTING 2 OBJECTIVES OF THE STUDY 6 | 21 TITLE OF PROJECT 6 PRIMARY OVBJECTIVE ‘SECONDARY OVBJECTIVESCOPE, ‘COMPANY PRO} LITERATURE SURVEY RESEARCH METHODOLOGY METHODOLOGY OF ANALYSIS FUNCTIONS DATA ANALYSIS CLASSIFICATION OFDATA DATA COLLECTION FINDING AND OBSERVATIONS LIMITATIONS SUGGESTION~~ CONCLUSION SUMMARY BIBLIOGRAPHY ANNEXUREINTRODUCTION ‘Management accounting also is known as managerial accounting and can be defined as a process of providing financial information and resources to the managers in decision making. ‘Management accounting is only used by the internal team of the organization, and this is the only thing which makes it different from financial accounting, In this process, financial information and reports such as invoice, financial balance statement is shared by finance administration with the management team of the company. Objective of management accounting is to use this statistical data and take a better and accurate decision, controlling the enterprise, business activities, and development. In ordinary language any system of accounting, which assists management in carrying out its functions more efficiently may be termed as management accounting. The Institute of Chartered Accountants of England and Wales has stated that “any form of accounting, which enables a business to be conducted more efficiently can be regarded as ‘Managerial/Management Accounting.” DEFINATION "Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy". Il. MEANING OF MANAGERIAL ACCOUNTING “Management Accounting is the application of appropriate techniques and concepts in processing historical and projected economic data of an entity to assist management in establishing plans for reasonable economic objectives in the making of rational decisions with a view towards these objectives. ‘The Institute of Cost and Management Accountants, London as defined Management application of professional knowledge and skill in the preparation of Accounting as theformation in such a way 16 asst management i the fortnation of policies and 1g and contro! of the operations of the undertakings CONCEPT OF MANAGERIAL ACCOUNTIN ul. In bu: ss, financial accounting refers to the act of recording a company’s financial ch are typically examined by investment banking analysis and sharcholders of transactions, wh public corporations. A separate practice known as managerial accounting refers to the discipline of record-keeping with an eye towards budgeting and performance measurement typically conducted by small business owners, IV. KEY TAKEAWAYS. + Financial accounting and managerial accounting describe two distinct record-keeping disciplines, + Financial accounting mainly refers to the statements corporations present to investors and prospective shareholders. + Managerial accounting describes the process of analyzing financial information tracked by small business owners. + All corporations in the United States must adhere to the generally accepted accounting principles (GAAP), which are standardized accounting formats. + Performance reporting, a subsection of managerial accounting, lets sole-proprietors ‘compare actual profits with projections. > Managerial Accounting Defined Managerial accounting i the process of identifying and analyzing financial information so that management personnel can make bettr-informed business decisions. Although the details of managerial accounts may vary from one business tothe next, they specific underlying : cash flow streams, debts, and assets. This type often itemize a company's spending practices, proprietors make more measured decisions. It also aids small banks of information helps sole in evaluating whether oF n¢ ‘ot a company is worthy of a small business loan. udgeting > Planning and Bi adFor manage i rial accounting, weekly and monthly budgets govern the types of products Sold, product inves a Mlory levels, and the price points needed to ensure that businesses maintain sufficient margi margins to cover costs and remain solvent, Furthermore, capital budgets outline potential future expenses, such as acqui jons, new equipment purchases, facility upgrades, and long-term project investments. > Performance Measurement Businesses rely on performance measurement metrics to compare their actual results with projections they made during their planning and budgeting phases. Not only does performance measurement help a company course-correct flawed or unprofitable operation, but this crucial benchmark is instrumental in letting a company compare its performance with that of its direct market competitors, > The Bottom Line Accurate and relevant accounts are crucial to management accounting and shrewd decision making by company leaders. If the accounting statements are inadequate, inaccurate, or incomplete, management may struggle to make appropriate choices when mapping out a company's long-term strategy. V. IMPORTANCE OF MANAGERIAL ACCOUNTING Management accounting is so important because it acts as a bridge between the finance function and other parts of the business. It helps the management controlling the entity. Its key tasks, assuring a long time company success, are: + Pricing + Budgeting © Unregulated reportingis referred to as the langunge of business, but this language of commerce and finance has its variations and limitations. Man and unregulated. These features do not take away ment accounting, compared to other categories of accounting, is optional, Mexib the importance of management accounting but they do give a different dimension to how a company views and reports its financial information, Accounting systems, no matter how basic or sophisticated, are tools for management to make their enterprise profitable. Financial professionals and entrepreneurs embrace the importance of management accounting because it allows more emphasis on future achievements and challenges. The importance of management accounting is seen in the forecasts that operational ‘managers make to stay ahead of the production of both goods and services. Income statements are all about a company’s revenues, but the detailed information conceming price setting is @ major component of future profits. The importance of management accounting is reflected in the way a company’s leaders can project and sustain fair pricing and still be profitable. «Price setting Both marketing and production managers contribute to the price setting of goods and services. The goal of marketing managers is to meet consumer demands during current and future times. Production managers oversee material and labor costs to keep these expenses within profitable standards. ‘The importance of management accounting is achieved by providing these key individuals with internal reports that guide the decisions of both the marketing and production departments. These reports can reflect periods of time outside the standard requirements of the balance sheet and the income statement. Detailed information about future demands and projected material costs make management accounting reports valuable tools for decision makers. © BudgetsBudgets also influence the importance of management accounting, The creation of a budget takes flexibility and the collaboration of department heads to state their individual needs and goals. Management accounting is the hub for gathering this information that is coming from many sources, Unlike many reports required by regulative bodies, for publicly traded corporations, intemal documents generated by management accounting are free from restrictions and regulations. ‘+ Unregulated reporting The importance of management accounting is also attributed to the freedom that ‘management accounting staff has when compiling information for operations, marketing, and finance. Generally Accepted Accounting Principles do not need to be applied to data that is reported in management accounting summaries or records. © Conclusion Having a management accounting department within an organization is optional, but the importance of management accounting should never be dismissed if a business wants to slay competitive and reap the benefits of both short-term and long-term incomeOBJECT I. TITLE OF PROJECT: “Study on the role of Managerial Accounting in cost control & Profit Maximization with reference to Dinesh Enterprises.” DIFFERENT OBJECTIVES BEHIND CONDUCTING THIS PROJECT: Managerial accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help managers make decisions within a company and to help achieve business goals. The data collected encompasses all fields of accounting that informs the management of business operations relating to the costs of products or services purchased by the company. Managerial accountants use budgets to quantify the business’ plan of operations, Performance reports are used to note the deviation of actual results compared what was budgeted PRIMARY OBJECTIVES: DECISION MAKING: - This is the most important benefit of the process of ‘management accounting. In fact, itis the main purpose of it. In this form of accounting, we use techniques from all fields like costing, economics, statistics, etc. It provides us with charts, tables, forecasts and various such analyses that make the process of decision making easier and more justified. PLANNING: - Managerial accounting does not have any strict timelines like financial accounting. It is, in fact, a continuous and on-going process. So financial and other information is presented to the management at regular intervals like weekly, monthly ‘or sometimes even daily. Hence managers can use this analysis and data to plan the activities of the organization. For example, if the recent data shows a dip in the salesfor a certain region, then the sales manager can advise his team and plan some action to rectify the s > FORECASTING: The management can forecast the achievement of objectives for short term and long term, The accountant provides necessary information and data for forecasting ANALYSIS & INTERPRITATION OF DATA: - The financial accounting data is rearranged for proper analysis, Comparative and common size statements are prepared for the meaningful interpretation of data. Ratios are calculated and likely trends are projected. IV. SECONDARY OBJECTIVEOBJECTIVE! 1) MARGIN ANALYSIS Managerial accounting analyses the incremental benefit of increased production — this is called margin analysis. This flows into the breakeven analysis, which involves calculating the contribution margin on the sales mix to determine the unit volume at which the business’ ‘gross sales equal total expenditures. A managerial accountant will use this information to determine the price point for products and services. 2) CONSTRAINT ANALYSIS Constraint analysis indicates the limitations within a sales process or production Kine. find out where the constraints occur and calculate the impact on cash Managerial accountant flow, profit and revenue. 3) CAPITAL BUDGETING lecide when, where and how much money to Managerial accountants help a business di nancial data. Using standard capital budgeting me to help decision makers decide whether to embark on costly , such as net present spend based on fit value and internal rat fe of return, projects or purchases.‘The process involves Is, decidin, 18 there is a demand for products or vies, and Finding the appropriate way to pay or he Purchase, 1 also outlines lure costs and benefits, 4) TREND ANALYSIS/FORECASTING Reviewing the trend line for certain costs and investigating unusual variances or 8. Decisions are made by us Sales volumes, geographical location, financial data to calculate and project future financial sity deviations i an important part of managerial account inform ing previous ion like historical pricing, customer trends and 5) PRODUCT COSTING/VALUATION Determining the actual costs of products and services is another element of managerial accounting, Overhead charges are calculated and allocated to come up with the actual cost related to the production of a product. These overhead expenses may include the number of B00ds produced or other drivers related tothe production, suchas the square foot ofthe fecilty Along with overhead costs, managerial accountants use direct costs to assess the cost of goods sold and inventory that may be in different stages of productionOF MANAGEMENT ACCOUNTING SCOPE The main concer of management aecounting is to provide nee we ‘Say quantitative and qualitative information to the management for planning and control, For this purpose itd © it draws ut information from accounting as well as non-accounting sources, Hence, its scope is quite vast and it includes within its fod almost all aspects of b : usiness operations. However, the following areas may rightly be pointed out as lying within the in the scope of management accounting, Financial Accounting: ‘The major function of management accounting is the rearrangement or modification of data, Financial accounting provides the very basis for such a function. Hence, management accounting cannot obtain full control and coordination of operations without a well-designed financial accounting system. Cost Accountiny Planning, decision-making and control are the basic managerial functions. The cost accounting system provides necessary tools such as standard costing, budgetary control, | inventory control, marginal costing, and differential costing etc., for carrying out such functions efficiently. Hence, cost accounting is considered a necessary adjunct of management accounting. iii, Revaluation Accounting: i Revaluation or replacement value accounting is mainly concemed with ensuring that capital is maintained in real terms and profit is calculated on this basis. iv, Statistical Methods: Statistical tools such as graph, chars diagrams and index numbers etc., ; i ce i : 7 i information more impressive and comprehensive. Other tools analysis, sampling techniques 1» as time series, regression are highly useful for planning and forecasting. Taxation: This includes computation of income tax a8 per tax laws and regulations, fi é gulations, fi ; ling of nd making tax payments. In recent times, J it also includes tax planning | vii, Organization and Methods [O&M]: O&M deal with organizations reducing cost and improving the efficiency of accounting. as also of office systems, procedures, and operations etc vili. Office Services: This includes maintenance of proper data processing and other office management services, communication and best use of latest mechanical devices. x, Internal Audit: This includes the development of a suitable system of internal audit for internal control. Xi. Internal Reporting: This includes the preparation of quarterly, half yearly, and other interim reports and income statements, cash flow and funds flow statements, scarp reports, etc.> Company Name - Dinesh Ei > Mission — We are committed to meeting the expectations of our clients with standards and technology > Vision — Founded on: > Company Do- > Company Logo- COMPANY PROFILE Innovative Thoughts Creative Design Value-added Solutions Alll Services at one stop Design Services: Great design encourages though collaboration & increases productivity. Space planning & Interior design-visuals, detailed layouts 3D drawing walk through, culminating in professional result. Construction: Our construction service is always ready to turn design into realit on time, in budget. We base our success on using our building and technical knowledge to execute project construction taking care of variances and defects. Furniture: We provide top quality contract office furniture for your entire commercial space. We are partners with manufacturers to deliver the finest quali with economy. Design process shows our commitment to quality & value Project Management: Our project management service encompasses every step of the often complicated proce n to your needs & manage the project from the start end iss involved in design, construction and renovation. Lister+ VODAFONE + WIPRO + MICROLISE > Work Photograph —LITERATURE SURVEY 1910 en The Histor oF Accomtlnys, ‘The management accounting pruetice nally discussed in a series of ticles published in The Unpincoringg Mayazine, Aw wa typical of carly management accounting practice alter the industrial revolution, it wow a topic of interest to engineers. Church dis sed practices that conveyed the manage oment accounting, principles of causality and analogy but never formally defined them. ‘The content of this series was reprinted in The History of Accounting Journal in 1976, 1923 — John Maurice Clark. Studies in the Economics of Overhead Costs. Management accounting theory developed and was embedded in his cost allocation discus ion; Clark stressed the need to consider causes and their effects. He was Iso the first to delineate operational cost concepts from decision cost concepts having introduced the concept of avoidability, 1936 to 1954 — Committee on Cost Accounting Concepts and Standards (CACS), Operating under the direction of the American Accounting Association, CACS had determined ‘0 develop accounting principles and standards forall fields of accounting. 1954 —Benninger. The Accounting Review. "The principles accepted would not nee! ‘0 be restrictive, except in the sense that any proper practice restricts departure from it. They should deal more with fundamental methods of expressing accounting facts than with the extent of "disclosures" in published statements." and the cost accountant could be more eftective the further his basic data were from the general ledger." 1979 — Shillinglaw. Cost Accounting Principles for External Reporting: A Conceptual Framework. "A body of concepts, principles, and practices has evolvedt over the radually becoming what might be referred to as generally aocepted cost accounting years, gt principles (1979, 157-158)." 13ch, tev discusning th ews Row . Aeconntinge nnd Busi menningfal management accounting, terminology surrounding the lack of common and r counting." Choudhury did n herent theory af, ifyou like, a conceptual SAYS." We ane no nearer te being provided with a t; however, propose a management ant ae framework for manage accounting conceptual framework. 2020 — Richardson, Accounting Historians Journal. Alan Richardson documents sons why managerial accounting has been dominated by financial accounting: 1g criteria to judge the quality of management 1. use of financial account accounting systems, 2, the assignment of management accountants to subordinate posi organizational units whose primary purpose was financial accounting, | accounting in the market for educational materials 3, the dominance of finan¢ 4, the judgment of the labor market that a financial accountant could replace a ‘management accountant (but not vice versa) and, 5, the need for a young profession to gain and retain the support of established interests in society 2005 - International Federation of Accountants, Professional Accountants in Information Paper: The Roles and Domain of the Professional Guidance section it states, "The purpose of id efficient decision- Business Committee. ‘Accountant in Business. Under the Standards and principles-based good practice guidance is to encourage effective an adoption of tools and techniques that can be applied intelligently within Principles-based good practice guidance focuses on support robust making and the different types of organizations. performance by addressing the value- creating processes and procedures that business outcomes and successful organizations, nal. The Management Accounting 2007 — Van der Merwe. Cost Management Jour 1s series relied heavily on Shillinglaw's work with one Philosophy series of articles. Thi exception. It added a philosophical foun« reasoning and Inductive reasoning and two of .dation by using the basic Epistemology of Dedui the four laws of logic to show that management 14ausality and analogy and that they are rooted SSOUMEINE'S 0 principles truth, f of Accountants, Professional Accountants in \ce: Evaluation and Improving 2009 — International Federation of Accountants, Professional Accountants in Business Committee. Information Paper: Evaluating the Costing Journey: A Costing Levels Continuum Maturity Model. The maturity model was published as supplementary to the principles-based IGPG (referenced above) to allow companies to assess where they were ‘on the proposed costing continuum as far as their management accounting maturity is concemed. Resource Consumption Accounting (RCA) was found to be the most advanced method available today. 2011 — Institute of Management Accountants. Strategic Finance Journal. In the October 2011 issue, an article titled Why We Need a Conceptual Framework for Managerial Costing provides a brief overview of the reasons why management accounting needs its own framework distinctly separate for internal managers. 2012 — Institute of Management Accountants, Managerial Costing Conceptual Framework Task Force. Conceptual Framework for Managerial Costing. An Exposure Draft was released July 2012 for public comment and is the most extensive and thorough uidance available to management accounting practitioners and users of management accounting information. nstitute of Management Accountants, American Institute of 2014 - Chartered I Certified Public Accountants uni of the world's foremost aero! s. Global Management Accounting Principles (GMAPs). Two ancy bodies combined to create a new set of principles to guide best practice.ARCH M ‘THODOLOGY Generally res dered as nn end to arrive at the answer practical problem through the application of scientific methods to the knowledge univers is movement from known to unknown, Research is essentially a logical and an organized enquiry seeking facts through objective verifiable methods in order to discover the relation [among them and to refer from the board principles or Inws. It is really a method of ertical thinking. Research may be defined as a systematic and objective analysis and recording of controlled observations that may lead to the development of generalization of principles or theories resulting in predicting and possibly ultimate control of events. Methodology is often used in a narrow sense to refer to methods, technology or tools _ | employed for the collection data as well as it’s processing, This is also used sometimes to designate data collection to arrive at the conclusion. Infects, it describes that what should have been done, It provides answers to some of the major questions while search like what must be done, how it will be employed, how sources of data will be analyzed to arrive at the conclusion. For systematic research scientific approach is necessary. It is therefore essential to follow systematic methodology to arrive at a proper conclusion. > The procedures involved in the concept of research methodology are:- 1) Selection of subject. 2) Selection of project title. 3) Selection of time period. 4) Collection of data. 5) Reliability of data. 6) Analysis of data. 7) Reporting.1. ACCePICM relevant scientific method £FPhs, which elearly show the finding and half us to understand thing is more better way case study and illustration. ME. ETHODOLOGY OF ANALY Data whieh has been collected through various sources has to proceed and analyzed the used for analyzed processing is done by different different table and comparative chart also used for analyzed and the most important ways was ANALYSIS: The data collected has to process and analysis is done in accordance with the acceptable relevant scientific method processing of the data covers editing loading classification. EDITING: Editing is a routine task it is process of examining collected data especially in survey to detest and animate error editing endures completeness accuracy and uniformity. CODING: It is process of assign numerical or other symbol to symbol to answer so that response can be part in a limited number of categories. CLASSIFICATION: The large volume of data collected for a search study has to be reduced in homogenous gropes for getting a meaningful relationship. This is known as classification of data. It condense data in such way that similarities and dissimilarities be apprehended, s0 as to facilities comparison. Clasification of data collected can easily : ay ed as by geographical grouping chronological grouping qualitative and can be categoriz quantitative groupings.5. TABULATION, 2 IL is a process of summarizing row data and displaying, the same in Concept from for further analysis, ‘The tabulation can be simplified in rows andcolumns, it conserves space and minimizes exploratory and descriptive statements, ‘Tabulation facilities the process of comparison. It assists in various statistical computations, It simplifies complex data, and gives identify to di a and reveals pattern, 6. GRAPHIC PRESENTATION: Graphic presentation of statistical data gives a pict effect. It enables one to present data in simple, clear and effective manner. It shows what is happening and what is likely to take place just as quickly as the age is capable of working. A graph isa visual form of presentation. It provides an attractive and impressive view. It also provides easy comparison of two or more phenomena. > FUNCTIONS OF MANAGEMENT ACCOUNTING 1. Modification of Data: Accounting data as such are not suitable for managerial decision-making and control purposes. However, they may be used as the basis for making future estimates and projections. For example, the sales figures for different months may be classified to know the total sales made during the period product-wise, salesman-wise, and territory-wise 2. Analysis and Interpretation of Data: ‘The accounting data is analysed and interpreted meaningfully for effective planning ea and deci aking, For this purpose the datas presented in a comparative form. Analytical lecision-makin; ve Financial Statements, Common-size Statements, Trend percentages, tools such as Comparative Financial : 1d likely trends are projected. and ratio Analysis are used an‘ trol: 3. Facilitating Management Com sing enables all accounting efforts to be directed towards the ecoun Management * «ly by conteolling the operations of the company more effectively. jen! attainment of goals efficMere financial data and its analy tation are not sufficient for decision: making pumoses, The Hformation, which cannot bee wily > DATA ANALYSIS The role of the management accountant is to perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy. Management accountants are key figures in determining the status and success of a company, In this example, the only tasks that would be assigned to the management accountant are budgeting and taxes. The financial accountant would handle the other tasks. Define Management Accounting: Management accounting means analyzing and recording business activities for intemal company use in an effect to increase efficiency and productivity. High level of Entities and process flow of MANAGEMNT ACCOUNTING + Managing all the Balance sheet + Managing all the Profit + Managing all the Loss + Managing all the Finance + Managing all the Transactions © Managing all the Accounts, ‘Managing all the Cash‘Accounting ‘Transaction agement Management ‘Zero'Level DFD Accounting Management System’ Fig: Accounting Management system CLASSIFICATION OF MANAGERIAL ACCOUNTING: ed In managerial accounting, costs are classified into fixed costs, variable costs o} product costs or period costs (for external reporting); direct costs or costs (based on behavior); con traceability); and sunk costs, opportunity costs or incremental costs indirect costs (based (for decision-making) Classification of costs based on behavior helps in cost-volume-profit_ analysis. jassiti in traceal the purpose of decision-making is important to help management bility is important for accurate costing of jobs and units Classification based produced. Classification for identify costs whieh a” relevant for a decision, enti ’ron the different enteporte por fz coe om lad i erie Za 7 Wika = oot Coser Vassification Diagram: ‘the followin nuumina imto which conte are classified for different purpe ere 10) KG Ree Fig: Cost ClassificationProduct Costs vs. erlod Costs is and reco ’ Ino. actory iuned to the manufacture of Prod Zed for financial reporting when sald. They include direct materials, direct wages, factory depres Period costs sts are on the other hand are all costs other than product costs, They include marketing costs and adn + Breakup of Product Costs The product costs are further classified into direct materials, direct. labor and manufacturing overhead costs: ‘* Direct materials: Represents the cost of the materials that can be identified directly with the product at reasonable cost. For example, cost of paper in newspaper printing, ete. © Direct labor: 1, for example cost of the time Represents the cost of the labor time spent on that product etc. spent by a petroleum engineer on an oil rig, + Manufacturing overhead costs: production costs except those for direct labor and direct materials, for Represents all wn accountant's time in an organization, depreciation on equipment, example the cost of at clectricity, fuel, ete. > Direct Costs vs. Indirect Costs costs that can be specifically identified with each unit of a product are costs. Whereas those which cannot be traced to a specific unit are indirect The product called direct product product costs. Thus 4 manufacturing overhead cost 8 indirect product Cost, jrect material cost and direct Inbor cost are direct product costs whereas ys. Conversion Costs & Prime Cos cuts are the sum of oll direct costs such as direct materials, direct Inbor and any Prime © ost. other directConversion 60 and the a mai are all costs in fed to convert the raw materials to finished products Saual the sum of direct labor, other direct costs (other than materials) and maficturing overheads > a Fixed Costs vs, Variable Costs Fixed costs are cos in a certain level of output or sales. This certain limit where fixed costs remain constant regardless of the level of activity is called relevant range, For example, depreciation on fixed assets, ete. Variable costs are costs which change with a change in the level of activity. Examples include direct materials, direct labor, etc. Mixed costs (also called semi-variable costs) are costs which have both a fixed and a variable component. > Sunk Costs vs. Opportunity Costs The costs discussed so far are historical costs which means they have been incurred in past and cannot be avoided by our current decisions. Relevant in this regard is another cost classification, called sunk costs. Sunk costs are those costs that have been irreversibly incurred or committed; they may also be termed unrecoverable costs. In contrast to sunk costs are opportunity costs which are costs of a potential benefit foregone. For example the opportunity cost of going on a picnic is the money that you would have eamed in that time.Bank Transtors Inter Tees General Accounting Events Fig: Data Flow Diagram > DATA COLLECTION Collection of data refers 0 purposive gathering of information rel ion relevant to the subject ter under sty pnd me mesbods weed depend rain ly on the nature, pun . Purpose and scope of to be undertaken, con ean be grouped under two types:~ fis stair fas well as on the availability of resources and tim ne. ‘The data collecti e primary datspape Secondary data y c."Thes PRIMARY DATA: - Primary data are those which are collected forthe First time, They are original in er for the first time for her own izinal in character. They are collected by the researcher for the first ime for The source of primary data includes: 1. Direct personal investi 2. Interview 1. DIRECT PERSONAL INVESTIGATION- This implies the situation where the researcher goes into the field of study in person for the collection of required data. Also, the investigation of this nature is normally confined to a single locality and the information gathered is capital in nature. 2. INTERVIEW METHOD- Every interview has got its own balance of revaluation and has withheld information, an interview can be effective informal verbal and non-verbal conversation initiated for the specific purpose focus on a certain planned contained areas. } SECONDARY DATA- Secondary data are those which have already been collected by others. When it is not possible to collect data in primary form, the researcher may take the help of secondary data, They are thus which have already been collected for serving the objectives other then what the researcher might have in his mind. The sources of secondary data includes:- 1) Books"Hooxs A bool tg is A collection of paper or other material with text, pictures or beth weitten on hem, boy - bound together along one edge, usually with covers, In library and information Science, 4 A book is calling a monograph to distinguish it from serial periodicals such w magazin ‘Baines journals or newspapers, 2. WEBSITE. ‘ion and is ‘A website may be the work of an individual, a business or other organiza typically dedicated to some particular topic or purpose. Any website can content s so the distinction between in dividual sites, as perceived hyperlink to any other website, by the user, may sometimes to blur. 3. JOURNALS: ‘A journal may publication issued at stated intervals, such a! the transactions of a society, are often called journals. In academic use, a journals refers to. serious, scholarly publication, most often peer-reviewed. The purpose of a journal \s magazines or the record of is to provide a place for the introduction a scrutiny of new research and often a forum for the critique of existing research. FINDING AND OBSERVATIONS OF PROJECTCapital Account Dinoah Enterprises Balance Sheet Sara OT 30,02,210.20) Fixed assets seein ness Copel Ae 0.03,21026 ‘fevture oro Hondo ‘err Loans (Lisinty) 50,27,384.00| Mooto ot oo ‘Secured Loon 20.01,284.00 Passion Hero Honda ieee ‘Amnod Oharmechikor ‘30,000.00 Pulser Boo) oma Ganson Kewece 250000000 ‘Swit Dozto tame ona teraré Mep Sottton17,1600000 Tools & Equipments tar Valsnal Kawado _""Se.000.00 TVS: Wego Mane Current Liabities 65,42,514.00| investments s2znseaen Duties & Taxes 17,99,200.10 FD Bhagini Nivedta zen > Provisions 9,700.00 FD BNS 3771074775 nu Sundry Creditors —48.93613.90 Gold & Siver 110 House @ Upper Indra Nogar $962,000.00 Profit Loss Ale Invostmont in Sharos 5000.09 Opening Balance RD Bhagini Nivedita 4200000 ‘Curent Period 9,07,990:33 RD Dona Bank 5000005 Less: Transferred 9,07,390.33 |Current Assets: 4,03,50,236. Loans & Advances (Asset) 14,26,900.00 Sundry Debtors 64.01,353.45 Gasheinchand 4221148 Bank Accounts 1549,11407 PGV&Co. (Auditor) 7,66,379.00 1DS-IT 1,64478.00 Total 4,60,73,117.26| Total 1,60,73,41 eetotal current assets Working capital (2016-2017) ch Entonpeieaw cee te "Pune & Loss Alc Profit papez0igie Soe 2017 Age ONG 2087 14m sos Purchase éccounts 200 sae acai nasa Shout 2% 100% aa. 25000 “Sue or 28% tn 11310 09 Purchase nput 13. 120,371.00 Sole Not OF cote 14430,00700 aso et Marie ares Labour Roop ianone00 pease Ae Putchases Inout 12.555 100473400 Prehese Uno 382.05 masa rote 382.05, Doct expanse saooo a7 “ph ateor Choos saat woe > Transport Charpos 2 22,81,124.0] = =e 326.1% 99310,606.00) B90 A5 806.00 22,04,124.00 Indirect Expons 137373367 Gross Proft bt ‘Audit Fees: 17,700.00 ‘Bad Debts 1,23.455 89 indirect Incomes: Bank Charges ian i tom coer (66,41300 Interest On Loan (23,845.00 host on VAT reece terest - Service Tax Office Rent 30,000.00 Professional Feos 47,985.00 228,52 Repais & Maianance 930000 Sonicg Tox Expenses 439,691.00 ‘Sta Weare | 5500.00 Total 22,81,124.00Dinesh Enterprisos 233, Nene Kamoia Neh Hosp! ‘Mangalwar Poth Pune Balanco Sheet ‘ape 2017 to ater 2018 Liabilities Basi Mazo Resets peat Mees z 40st ss Capital Account 21,2666.06| Fixed Assos ae Gineshs Coptas Ae _34,2648806 ‘omputer 288200 Funk 1: Loans (iby) soazgte00] ferolonde giei2 Secured Lane 29011000 Mooie ioar03s Unsecured Loans Geasoaw ‘ession Horo Hondo soor0se Curent Liab sesrateza| Setbose 328460.00 reat Lables : ee Tools & Equpmonts Prose F000 18 Wego _s862600 + - yarssae eee sai Investments srsoom SOSETISaD ald 8 Siver 009. Peppening Balance ovse @ Upper Indra Nagar $8,48,106.00 Curent Period 501568 invostmentin Shores 000.00 Less Tanstored 5951568 RD Account BN 42,000.00 Current Assets 59,18,477.63 Closing Stock 00,110.00 Loans & Advances (sel) 1429.900.00 Sundry Debtors 798,220.38 Cash-inchand 66,068.73, Bank Accounts 2,34,601.85 GST Credit 9,44,388.00 PG V8 Co (Audion 4483.00 108- Ir 4,78,617.00 Total 420,20;390.28) Total 7 20,20;390.28Dinesh Entorprisos 1289, Naor Kamla Neh Hospital Tonga Pot ‘une Profit & Loss Ale ape2017 Saar 2010 —Paticulacs ae aS parieviars EBATET (purchase Accounts 3,07,83,490.85| Sales Accounts, 449,10423.00 wae GST azorersse1 ‘GST Coleted 19670100 Purchase VAT 2asno46 Sos tatourRecopts 9839406000 : Sowioe Tox Colecied 7010.00 Direct Expenses s2i9ne0s4o| Ver Cateced esso0300 ‘Labour Gharges saraerzco Salory 1750000 Closing Sock Transport Charges 2836640 we 00,1000 Gross Proftelo 2727860005 esr} Tas Indirect Expenses 19,69351.7| Grose Proft bt ar2786805 ‘ud Foes so0300 Bank Charges 274679 Indiectincomes Cor nsurance 16,467.00 Deprecioton 7372000 GST hors 3100200 sr Pad 44488200 Interest Car Loon 8403.00 | Interost TOS 75300 Miscolencous Expensos ‘1,68, 86598. Office Expenses 19,198.00 Postage & Telephono 223.82 Professional Fees 2500000 Service Tax 1590865 Sarvoe Tax Inloest 156347.00 TOS laters 4408.0 VAT Exponses 79,72000 Véte Repafe shone _ 1.18890 Net Prot 258,516.65) Total HAT SeBO| Tot EERIECapital Account Dinesh’s Capital Ae to.4s20105 14588830 aoe oe nse ; ad Ferre ce ‘rate cronies aausnn| eater cas tae aeons Tot pmane ee ee a Rute ae Prot town Ae ——. ea7ens00 eas Sat Ser oe — Seamer oo ses iericia tage «aang ee aes meee swore cunt Aes srazziess Cioong Sock ery Coane baaioncestssey Taatoneo Sayan ee Cather eee Sa Actas erasaee ec fs Tour TITRA Total EATines (10-19) Her Mospeat Profit & Lo SHAG: | 8,00,110.00) Sales Accounts EECA ITT 2avsszea32 0. ‘Sales & Labour Receipts 742.22 4140,22.174.14) Closing Stock s2psas0.00 1392279768 Stock s2onasoon 408230 00 | 8773.54 Direct Expenses 67.51,240.0| ‘Hamah Labour Charges ‘Salery Trenspor Charges Indirect Expenses 21,94,062.82| Bad Debts 227,588.00 Benk Cherges 7282172 Depreciation 208,111.35, GST htorest 1.24000 Interest - Loan 1580281 Interest on TDS 175,588.00 Interest on VAT 9,667.00 Legal & Profession! Fees 79800 Offce Rent 279,480.00 Postage & Telephone 10398.00 Professional Fees 3248700 Service Tax 10349,221.00 Staff Welfare 16311.00 Stationery 8299.00 TTolephone Expenses 24098 Traveling & Conveyance 888: New Prot 14,29,505.36 Totet Esisr seal Total Tsar aseFORMU) * Revenues ~ Expenses = Net income Cost of beginning inventory + Cost of purchases — Cost of ending inventory = Costs of g00ds sold Net income = (Sales price — Variable cost per unit)(Volume) — Fixed costs Net income = (Contribution margin x Volume) — Fixed costs Price variance = (Standard price — Actual price) x Actual quantity Total sales— Total variable cost = Future value Total contribution margin ~Present value x (1 + interest rate)***"> RESULT: The net Profit of Dinesh Enterprises shows an uneven trend, In Year 2016-17 Profit was 09, 07,390 but Net Profit Decreases in Year 2017-18, But It had highest Net Profit in the 2018-19,On the basis of study included following limitations * PI aw Based on historical data Lack of wide knowledge Costly system Developing stage Lack of objectivity Provides only data Complicated approach’ Preference to Intuitive Decision Making,SUGGESTION Con: should maintain Managerial Accounting Techniques to minimize Indirect pany shot Expenses * Use Cost Control Techniques to overcome Indirect Ex; Net Profit is Rs. 9, 07,390 but Because of Lack of Cost Control in FY 2017-18 Net Profit Penses as we see in FY 2016.17 Decreases. > When Company Use Intemal Auditing Data & Cost Control Techniques Company Get 80% Raise in /net Profit in FY 2018-19, > Sol Suggest Use Managerial Accounting to cost Control & Maximize Profit.CONCLUSION Conch sion Basically the techniques of manngerial acco organization t help in devi ng. ate applicable in an g planning, supporting de pns of management, and Performance management system and provide management uss ‘ant to formulate and interpret {he organizational strategies in order to generate profitability. 1 I helps ensure organizational success, CONTRIBUTION TO ORGANIZATION + The net Profit of Dinesh Enterprises shows an unev ‘Were 09, 07,390 but Net Profit Decreases in Year 201 in the 2018-19, fen trend. In Year 2016-17 Profit 7-18. But it had highest Net Profit Maximization of Profit, Managerial accounting is important aspect of financial management. We find that profit is increasing and decreasing from 2016-2017 but in 2017-18 it totally low which will affect the liquidity of the company but in 2018-19 company again recover it company will again stand, and 4. If company properly utilizes the recourses of managerial Accounting property and Control Cost then Automatically It Helps To Maximize Profit of the Dinesh Buterptises.SUMMARY *To ci Study role of Managerial Accounting in Cost Control & Profit maximization with reference to Dinesh Enterprises. * To study the working Managerial Accounting of Dinesh Enterprises * To know the importance of Managerial Accounting in the company. © To study the impact of Managerial Accounting on the balance sheet of the company. * To study how the firm is able to continue its operation and that it has sufficient ability to satisfy both short-term debt and upcoming operationBIBLIOGRAPHY Books Referred: CA. Rama Gopal,~ Financial Management and Management Accounting v [Link] and [Link], Financial Management [Link] ~ Financial Management Van der Merwe (May-June 2006). Cost Management » Choudhury, N.; Arnold, John; Ward, C. W. R.; Kirkman, Patrick (1983). Accounting and Business Research. Websites References: > [Link] > [Link]Particular 2016-17 ANNEXURE 2017-18 op 18.19 Total Incomes : ‘Sales Accounts 2,00,10, 06 | 40183 PaaN RTA Closing Stock 8,00,110 )12,03,480 Total Incomes: 2,00,10,606 | 437,10288 | Zara Expenses: Opening S dese Si ca 800,70 Purchase 78,36,103_[3,0783,40085 | 1A020,07014 Accounts Direct Expenses | 98,93,379 | 1,21,98 883.40) —67,51,340 Indirect Expenses | 13,73,733.67 | 189,353.37 [21,96 00282 Total Expensest | 191,03,218.7 | 448,51,7273 | 2,97,07/6869 NeProt | 907390 858518 | 1429505 Fig: Above t able shows the ‘Managerial Account Calculat Loss. ion which shows Profit and