Analysis of Divisional Performance of Asian Paints Ltd
DEPARTMENT OF COMMERCE
SCHOOL OF MANAGEMENT
PONDICHERRY UNIVERSITY
ASSIGNMENT ON ADVANCED COST ACCOUNTING ANALYSIS OF DIVISIONAL PERFORMANCE OF ASIAN PAINTS LTD
SUBMITTED TO: - SUBMITTED BY: -
DR.G.SHANMUGHASUNDARAM A.PURUSHOTHAMAN
ASSOCIATE PROFESSOR M.COM (BUSINESS FINANCE)
DEPT. OF COMMERCE 2nd YEAR
PONDICHERRY UNIVERSITY REG. NUMBER: 11351059
INTRODUCTION
DIVISIONAL PERFOMANCE OF COST CENTRE AND PROFIT CENTRE
A profit centre is a unit of a company that generates revenue in excess of its expenses. The main aim of profit centre is to earn profit. The performance of profit centre is evaluated in terms of whether the centre has been achieved its budgeted profit A cost centre is a business unit that is only responsible for the costs that it incurs. The manager of a cost centre is not responsible for revenue generation or asset usage. The performance of a cost centre is usually evaluated through the comparison of budgeted to actual costs. The costs incurred by a cost centre may be aggregated into a cost pool and allocated to other business units. Investment centre is responsible for both profit and investment. The investment centre manager has control over revenue, expenses and the amount invested in the current assets. The following are the techniques used to measure the divisional performance of cost centre and profit centre * Variance analysis * Profit * Return on investment * Market share
COST PER UNIT:
Cost refers to the total cost incurred for the production. So cost per unit refers to the cost incurred for producing 1 unit. Normally we used the below formula to calculate the cost per unit
Cost/unit = total cost / No. of unit produced
COST PER UNIT year | Production | Total expenses | COST PER UNIT | 2008 | 40946.7 | 559586 | 0.073173203 | 2009 | 50418.7 | 602922 | 0.083623918 | 2010 | 57937.2 | 732142 | 0.079133829 | 2011 | 72582.9 | 849056
SCHOOL OF MANAGEMENT
PONDICHERRY UNIVERSITY
ASSIGNMENT ON ADVANCED COST ACCOUNTING ANALYSIS OF DIVISIONAL PERFORMANCE OF ASIAN PAINTS LTD
SUBMITTED TO: - SUBMITTED BY: -
DR.G.SHANMUGHASUNDARAM A.PURUSHOTHAMAN
ASSOCIATE PROFESSOR M.COM (BUSINESS FINANCE)
DEPT. OF COMMERCE 2nd YEAR
PONDICHERRY UNIVERSITY REG. NUMBER: 11351059
INTRODUCTION
DIVISIONAL PERFOMANCE OF COST CENTRE AND PROFIT CENTRE
A profit centre is a unit of a company that generates revenue in excess of its expenses. The main aim of profit centre is to earn profit. The performance of profit centre is evaluated in terms of whether the centre has been achieved its budgeted profit A cost centre is a business unit that is only responsible for the costs that it incurs. The manager of a cost centre is not responsible for revenue generation or asset usage. The performance of a cost centre is usually evaluated through the comparison of budgeted to actual costs. The costs incurred by a cost centre may be aggregated into a cost pool and allocated to other business units. Investment centre is responsible for both profit and investment. The investment centre manager has control over revenue, expenses and the amount invested in the current assets. The following are the techniques used to measure the divisional performance of cost centre and profit centre * Variance analysis * Profit * Return on investment * Market share
COST PER UNIT:
Cost refers to the total cost incurred for the production. So cost per unit refers to the cost incurred for producing 1 unit. Normally we used the below formula to calculate the cost per unit
Cost/unit = total cost / No. of unit produced
COST PER UNIT year | Production | Total expenses | COST PER UNIT | 2008 | 40946.7 | 559586 | 0.073173203 | 2009 | 50418.7 | 602922 | 0.083623918 | 2010 | 57937.2 | 732142 | 0.079133829 | 2011 | 72582.9 | 849056