CONSOLIDATED FINANCIAL STATEMENT OF HAVELLS LTD

OPERATING COSTING

BY JUHI Y. PUNMIYAROLL NO. 33COSTING=Determination of costPROCESSSERVICEMULTIPLEMETHODS OF COSTINGJOBBATCHCONTRACTSINGLE What is Service Costing? Cost of providing the service.

Applied to systems performing services

Services are rendered to customers.

Examples:Educational institutuions , hotels,transport agencies,etc.

Nature of Operating costing Main objective- compute the cost of the services offered by the organization. First Step- Find or decide the unit of cost in such cases. The cost units vary from industry to industry. For example, in goods transport industry, cost per ton kilometer is to be ascertained while in case of passenger transport, cost per passenger kilometer is to be computed.The next step is to collect and identify various costs under different headings. The headings used are,

For example, in case of passenger transport organization, most of the costs are xed while few costs like diesel and oil are variable and dependent on the kilometers run.

Service Costs used in industries:TransportElectricitySteamship CompaniesHospitalsRestaurantsTheatresTravel AgenciesSchoolsRoad MaintananceHotels.

Service IndustriesSimple Cost UnitPassenger TransportPer KilometerGoods TransportPer KilometerRoad MaintenancePer K.M. of Road maintainedWater SupplyPer Kilo Liter of Water SuppliedCanteenPer Meal / DishService IndustriesComposite Cost UnitPassenger TransportPer passenger - K.M.Goods TransportPer Ton - K.M.ElectricityPer Kilowatt HourSteam, GasPer K.G. / Cubic Ft.HospitalPer Patient DayLibraryPer Member BookParticularsParticularsA] Standing Charges/Fixed ChargesInsuranceLicense/Permit feesSalaries of drivers, cleaners etc.DepreciationInterestC] Maintenance ChargesRepairsTyresSparesGarage chargesB] Running Charges/Variable ExpensesPetrol/DieselOilGreaseD] Total Cost E] Total ton kilometers/passenger kilometers

XYZ Transport Company Ltd.Cost Sheet October 2007Vehicle No: Registration No. Days Operated:Thank You