Chapter One

Management Accounting Practice
At Janani Tissue Papers LTD

A Review Of Costing Function
Chapter One:
Introduction
1
1.1 Origin of the report:
The report is originated to make a study on the costing procedure and the internal control system
of Janani Tissue Papers Industries Ltd as a part of the accomplishment of internship program
required for the completion of BBA program of Daffodil International University. As the part of
BBA curriculum this project is assigned to me by Jamal Ahmed Chowdhury Executive Director,
Accounts & Finance, Janani Tissue Papers Industries Ltd and approved by the academic
Supervisor Md. Arif Hassan, Associated Head of Daffodil International University, Department
BA.
1.2 Objective of the report:
The objectives of the report are as follows:-
Major objective of this report is to show what are the major functions or the chain works of
Costing and Budgeting section of Accounts and Finance Departments at Janani Tissue Papers
Industries Ltd. After reading this report learners will know the following issues:
• To set a general idea about operating procedures and functions of Accounts and
Finance department of JTP
• To explore the specific costing procedure followed by the Janani Tissue Papers
Industries Ltd.
• To get idea about LC & Local purchase documentation & payment procedures;
• To identify the factors which affect the costing procedure.
• Find out all internal and external costing and try to make it reduce.
• Understand their costing methods.
• Evaluating the efficiency and effectiveness of polices.
• Measure their controlling performances, organizing, coordinating operations
• Communicating Up-to-date information.
2
1.3 Scope of the report:
Costing procedure of a Tissue paper company is vital and vast thing. It needs to update in a
regular basis. Moreover, all firms try to keep this information secret in this competitive market.
So the study was essentially tried to identify the costing procedure followed by JTP and what are
the factors concerned with this procedure. The study was also tried to identify and analyze the
various expenses incurred by the JTP in an accounting year.
1.4 Methodology of the report:
The following methodology was followed throughout the study .The study is based on both
primary as well as secondary data.
Data regarding the organization profile collected in the following ways:
Primary Source:
o Careful observation of various activities of related section of that particular

department,
o Discussions with the officials of Accounting and Finance department.
Secondary Source:
 Organizational Brochures/ Annual Reports.

 Online information.
 Different JTP publications.
 Other relevant written materials.
Data Collection Techniques:
 Some of the primary data were collected by observing others doing their jobs.
 Much of the primary data were collected by the informal interviewing of the
company officials.
 Most of the secondary data were collected by the review and study of relevant
reports and documents.
3
1.5 Organization of the study:-
The report is divided into five parts. The first part is the introductory chapter. The second part
covers organizational part (a brief overview of Janani Tissue Papers Limited). The Third part
deals with report part. The fourth part includes overall findings with concluding remarks. The
last part provides Bibliography and annexure.
1.6 Limitations:-
Although I received co-operation from the concerned officials, they were not always able to give
me much time, as they were busy with their works. Time is an important issue in Report writing.
As I have been given a specific deadline for submission, observation and learning all the
functions of costing and budgeting within 3 months was really tough. Besides, all the comments
made, conclusions reached and suggestions for possible improvement provided are purely based
on my level of understanding, knowledge and my way of interpreting a particular statement.
Because of the lack of information, I have to make some assumptions that may cause few errors
or personal mistakes in the report. In spite of all these limitations, I have tried to put the best
effort as far as was possible.
4
Chapter Two:
Overview
5
Janani Paper Industries (PVT).LTD — venture of Janani Group
Janani Paper Industries Ltd. with venture with loremipsum is simply dummy text of the printing
and typesetting industry. LoremIpsum has been the industry’s standard dummy text ever since
the 1500s, when an unknown printer took a galley of type and scrambled it to make a type
specimen book. It has survived not only five centuries, but also the leap into electronic
typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of
Letraset sheets containing LoremIpsum passages, and more recently with desktop publishing
software like Aldus PageMaker including versions of LoremIpsum.
It is a long established fact that a reader will be distracted by the readable content of a page when
looking at its layout. The point of using LoremIpsum is that it has a more-or-less normal
distribution of letters, as opposed to using ‘Content here, content here’, making it look like
readable English. Many desktop publishing packages and web page editors now use LoremIpsum
as their default model text, and a search for ‘loremipsum’ will uncover many web sites still in
their infancy. Various versions have evolved over the years, sometimes by accident, sometimes
on purpose (injected humour and the like).
Balaka Press and Publications — venture of Janani Group
Balaka Press & Publication is one of mainstream printing facility of Hassan Book Depot. And
the details comes with loremipsum is simply dummy text of the printing and typesetting industry.
LoremIpsum has been the industry’s standard dummy text ever since the 1500s, when an
unknown printer took a galley of type and scrambled it to make a type specimen book. It has
survived not only five centuries, but also the leap into electronic typesetting, remaining
essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets
containing LoremIpsum passages, and more recently with desktop publishing software like
Aldus PageMaker including versions of LoremIpsum.
6
Bookman Printers & Publications — venture of Janani Group
Bookman Printers is one of mainstream printing facility of Janani Group. And the details comes
with loremipsum is simply dummy text of the printing and typesetting industry. LoremIpsum has
been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a
galley of type and scrambled it to make a type specimen book. It has survived not only five
centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was
popularised in the 1960s with the release of Letraset sheets containing LoremIpsum passages,
and more recently with desktop publishing software like Aldus PageMaker including versions of
LoremIpsum.
Faysal Book Binding — venture of Janani Group
Description for Faisal Book Binding with loremipsum is simply dummy text of the printing and
typesetting industry. LoremIpsum has been the industry’s standard dummy text ever since the
1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen
book. It has survived not only five centuries, but also the leap into electronic typesetting,
remaining essentially unchanged. It was popularized in the 1960s with the release of Letraset
sheets containing LoremIpsum passages, and more recently with desktop publishing software
like Aldus PageMaker including versions of LoremIpsum.
7
Sarker Printing & Publishing — venture of Janani Group
Sarker Printing & Publishing is one of mainstream printing facility of Hassan Book Depot. And
the details comes with loremipsum is simply dummy text of the printing and typesetting industry.
LoremIpsum has been the industry’s standard dummy text ever since the 1500s, when an
unknown printer took a galley of type and scrambled it to make a type
specimen book.
Janani Stationary Product — venture of Janani Group
Established in 2014, JananiBallpen Industries is the largest stationary manufacturer in

Bangladesh.
About us
Hassan Book Depot is one of the most renowned and top level book publication organizations.
Since the establishment this organization has been serving the students and guardians with books
and study related materials.
Proprietor:
Late. Abdul GofurSarker
Father- Late Hassan Ali Sarker
Establishing period & place:
Year-1953, Gorib Shah Sarak, Jessore.

The journey of this organization started as a seller of board books and helping books which was
burned out in 1965 and in 1971 Pakistani exploiters burned out the whole shop. And Hassan
Book Depot has been established as a publisher in year 1980.
8
Board of Directors:
SL Name Desenigation
1 Md. AbulKashemSarker Chairman
2 AbulKalamSarker Managing Director
3 Md. Riaz Mahmud Sarker Director
4 Arafat Faisal Sarker Executive Director
The name and fame of this organization spread countrywide since its union with National
Curriculum & Textbook Board (NCTB) in 1996. Till today, the associate concerns of this
organization are performing the great responsibility of publishing, binding and supplying the text
books of Primary, Secondary and Madrasha level with sincerity & devotion.
Janani Plastic Industries — venture of Janani Group
Janani Plastic Industries with loremipsum is simply dummy text of the printing and typesetting
industry. LoremIpsum has been the industry’s standard dummy text ever since the 1500s, when
an unknown printer took a galley of type and scrambled it to make a type specimen book. It has
survived not only five centuries, but also the leap into electronic typesetting, remaining
essentially unchanged. It was popularized in the 1960s with the release of Letraset sheets
containing LoremIpsum passages, and more recently with desktop publishing software like
Aldus PageMaker including versions of LoremIpsum.
Company Profile
Hassan Book Depot. One of the leading publications of Bangladesh. Since establishment, this
organization is taking care of the great responsibility of publishing and supplying the necessary
books and learning materials of the soft-natured pupil and guardians till now.
9
Founder : Late Abdul GafurSarker
Time and Place

: 1953; Garib Shah Sarak, Jessore.
of Establishment
Business at
: Seller of board books & supporting books.
the Beginning
The shop was burnt to ashes in 1965. In 1971, Pak Army burnt the
Notable Mishaps :
whole market.
Appearance as Publisher : 1980
Books of Kindergarten, Primary (supporting books for creative

Business Products : method) & Secondary level (supporting books for creative
method), English & Bengali Grammar.
Present Location & 38, Banglabazar, Dhaka-1000;Daratana Road, Jessore;KD Ghosh

:
Extension Road, Khulna;Contracts business in 40 districts as well.
Offset Technology in 1990 (First in Khulna Division).

Using Technology
: Web/Gauge Technology in 2008 (First among the Publications in
in Publication Industry
Bangladesh).
1.1. Background of Janani Tissue Paper:-
Janani Tissue Paper ltd started their journey in 2015.In the beginning, they had introduced
only 2 kinds of products and now they have introduced more. In the short period of time they
achieved third position in tissue market industry in Bangladesh. Their distribution channels
are growing faster and strongest so far. They face lots of problem at the beginning, however
they took fast steps to solve it and keep going ahead.
1.2. Mission Statement:-
Each of our activities must benefit and add value to the common wealth of our society. We
firmly believe that, in the final analysis we are accountable to each of the constituents with
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whom we interact, namely: our employees, our customers, our business associates, our fellow
citizens and our shareholders.
1.3. Vision:-
If there is one characteristic that has typified the JTP approach, it is the Vision to be the best
of our nature and human resource; a vision to establish our group and country as a respected
and valued regional presence.
1.4. Goal:-
I. Continually set the latest standards of modern technology in our industry to satisfy the
needs of customers through innovative products.
II. Contribute to the national economy and the infrastructure development of the country.
III. Secure the strongest competitive position in our relevant market places through
making quality product and operational excellence.
IV. Be recognized as a respected & attractive company & an employer of first choice.
V. Provide extensive career opportunities through competitive pay & benefits, training &
development & a congenial working environment.
VI. Empower our employees at every level and integrate them fully into our network.
VII. Achieve long-term financial performance.
VIII. Create secured investment opportunity within the country.
IX. Enhance versatility & diversification through the penetration of new market segments.
X. Improve administrative & organization structure to review all business lines regularly
& develop the best practice in the industry
1.5. Factory Location:-

i. Head Office:-33,Topkhana road, Meherba Plaza,Dhaka-1000
ii. Factory :-Ekuria,SouthKeranigonj, Dhaka
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1.6. Products:-
1) Wallet Tissue :-
Wallet Tissue are small pack which can adjust in small space. It has 12 sheet of tissue
paper in one pack and tissue papers come from Indonessia. So High quality is
garnted.It has 2 color pack- Green and Pink color and maximum retail price (MRP)is
10 TK and wholseller price is 8.00 TK. It is available in small,Medium grossary
shop.Green pack pocket tiussue has lemon perfume and Pink pack pocket tissue has
Straberry perfume.
S.L Name of the product Quantity M.R.P

1 Janani Wallet Pocket Tissue 10pcs×2ply=20sheet 10
2) Facial Tissue:-
Facial Tissue is also from Indonesia and it packed by JTP for further process. It has 3
sizes. It has many variant design and also high classy look. It is available in medium
and high grocery and departmental stores.
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S.L Product Name M.R.P

1 Janani Facial Tissue-60pcs×2ply=120sheet 37
3) Kitchen Towel :-
Kitchen towel was introduced last in 2017.It demands are high more than expected by
JTP. It has only one roll size. It is available in medium and high grocery shop and
departmental store.
S.L Product name Size M.R.P

1 Janani Kitchen 2 Roll 110
Towel Twin

Towel Single

Towel Green Twin
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4) Gold Toilet Tissue :-
Gold toilet tissue maintains high quality than other toilet

paper. It maximum retail price (MRP)is 25 TK. It is
available in all type of stores.
5) White Toilet Tissue :-
White toilet tissue maintains good quality than other

toilet paper. It maximum retail price (MRP)is 18 TK. It is
available in all type of stores.
6) Pink Toilet Tissue :-

Pink toilet tissue is average standard. It price are lower than other product and their target
customers are lower and middle income people. It is
available in small and medium shop.Itmaximum retail price
(MRP) is 16TK.
S.L Name M.R.P

1 Janani Gold Toilet Tissue 25
2 Janani White Toilet Tissue 17
3 Janani Pink Toilet Tissue 16
14
7) Paper Napkin:-
Paper Napkin is medium size tissue paper. It

introduced in few months ago. Itmaximum retail
price (MRP) is 48 TK. It has 100tissue or 13 *1
ply in one pack.
8) Hotel Napkin :-
Hotel napkin is a milestone product of JTP. It

maintains high quality standard. It was
introduced above 6 month and much popular in
short time. It maximum retail price (MRP)is42
TK respectively. It has 13”×13”=100 sheet.
9) Super Napkin :-
Super napkin introduced in few months ago. It

has super quality, high standard. But lack of
promotion it is not popular and at the risk of
vanished. It maximum retail price (MRP) is
TK28 respectively. It has 13”×13”=80 sheet.
S.L Product Name M.R.P
1 Janani Napkin Tissue-100pes(13”×13”) 48

2 Janani Napkin Tissue-80 (13”×13”) 42
3 Janani Napkin Tissue-80 perfumed (13”×13”) 42
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10) Hand Towel :-
Hand Towel is a milestone product of JTP. It was the first product introduced by JTP.
It is popular for its lowest price and standard quality. It has 150 sheet of tissue paper
in a packet. It maximum retail price (MRP) is 26 TK.
S.L Product Name Quantity Price

12 Janani Paper Towel 250pcs 250pcs 78
13 Janani Paper Towel Blue & Green 250pcs 250pcs 42
14 Janani Paper Towel Blue & Green 150Pcs 150Pcs 26
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Chapter Three
Part: One:
Description of Jobs
17
2 Departments of Janani Tissue Paper:

JTP Operates its business by extensive departmentalized. By different department it is easy for
them to directed, control and monitor.
The major departments of JTP are:
● Purchase Department
● Planning and Inventory Control Department
● Marketing and Sales Department
● Finance and Accounts department
● Human Resource Department (HRD)
2.1 Brief Description of Accounts & Finance department and others:-
Accounts & Finance Department:-
Accountant and finance department have 10 employees -6 employees in Head office and 3
employees in factory. They have major four departments.
. The sections of Accounts and Finance department are as follows:
• Costing and budgeting

• Treasury
• Tax And Payroll
• Legal Affairs
I. Costing and Budgeting:-
This section works in industrial operation control and business planning. They also
provided and receive information to others department. This section has to keep all
information and make data which can help for proper decision making.
Some activities of this department are as follows:

o Prepare Cost sheet
o Determine Manufacturing cost of a product
o Allocate Overhead to the product
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o Prepare various types of budget (Production budget, sales budget, cash budget,
purchase budget, departmental budget and many)
o Prepare different types of report. (Production report, Product profitability report
Inventory report etc.)
o Identifies the cost center.
o Does the inventory valuation etc.
II. Treasury:-
Treasury section deals with (i) cash at banks and (ii) bills.
 It looks the cash planning and management.

 It updates daily basis and make a review after a week.
 This department controls and monitors cash flow positions.
 There is a department monitoring and controlling activity of treasury sections.Etc.
III. Tax,Payroll and Legal Affairs:-

The tax section of account and finance deals with the taxation. The major activities are
 Salary disbursement to the employee
 Salary Tax
 Income tax of the company.
 Trade license of the company.
 Value added tax related activities.
 New product copyright
 Trademark related activities.
 Land related activities. etc.
2.2 Brief description of others departments:

1. Purchase Department:
The department deals with all the purchase of the organization such as:
• Pulp raw materials.
• Packaging materials.
19
• Office equipment.
• Machinery's etc.
2. Planning & Inventory Department

The planning department is concerned with the production planning, raw material
procurement planning etc. Their inventory stock systems follow FIFO method.
3. Human Resource Department
Major Activities of HR departments are as follows:
 Prepare Recruitment policy and procedure
 Placement of employees
 Human Resource Development planning
 Organizational structure review and modification
 Career planning
 Hiring and firing
 Job description preparation. Etc.
4. Marketing and Sales Department:

Marketing department has lots of responsibility than others. Company’s profit depends on sales.
Marketing and sales department always try adapt new concept and try to boost their sales.
Though their marketing policy is not well enough and they have poor marketing strategy.
20
Chapter Three
Part-Two:-
Materials-Controlling
Costingand Analysis
Tissue Paper Makin
Process:
21
1. Raw materials in Chipper:-

At first need raw materials to make tissue papers. Raw materials are waste paper,
Newspaper. It depends on machine. Raw materials are added with mixing water in
chipper where paper are making dry ,easy to cut and make it as pulp.
2. Pulping Section:
In pulping section, Chemicals and water added and made color as wanted. This is the
place where monitoring is more needed. If the chemicals are given more or less than the
whole products will be as waste. Then it is goes to Stock preparation system.
3. Stock preparation system:-

In Stock Preparation system, Paper was steam water are totally out and paper are given a
shape and go for further process. If steam is normal or high then the quality of product
will be not so good. So steams have to maintain a balance.
22
4. Paper Machine:-
In paper machine, paper is ready.
It is collected as a jumbo roll for further use.
In JTP tissue making process:-
Direct Material
Wastages paper:-
In JTP, The wastages paper is the main

raw materials. Most of the raw materials
are collected by its own company Janani
press and publication, Balaka press and
publications. It is their first advantage
that reduces their direct material cost
than other company. They Collect raw
materials and use it for the further
process.
23
Water:-
Water is most need in this process. They have 4 big

water tanks to reserve water. With added that they need
good drain system to make out the dying water.
Chemicals:-
Chemicals are important in this sector. Bleaching is one

of them which make white color. Dying is used to make
another color. Perfume is used after the tissue paper.
Indirect Materials:-
Materials used to Support the production process such as:

- Lubricants and cleaning supplies used in the assembly
plant.
Present cost of production:

Tissue White (One month)
Sl. Particular Tk.
1 Jumbo roll .kg 200000
2 Empty box.(120sheet) .pcs 49465.6489
3 Carton 9160.30534
4 Scoh Tap. Pcs 40000
5 Singer oil kg. 1000
6 Patching Glue kg. 11200
7 Wages/salary 250000
8 Power 1000
9 Transport 2000
24
Estimated cost of production:

Tissue White (One month)
Sl. Particular Tk.
1 Jumbo roll .kg 200000
2 Empty box.(120sheet) .pcs 3548.55
3 Carton 5000.73
4 Scoh Tap. Pcs 40000
5 Singer oil kg. 1000
6 Patching Glue kg. 11200
7 Wages/salary 200000
8 Power 1000
9 Transport 2000
Machines:
1) Recycled Paper and Pulp Machine:-
They have three mother machines (Recycled paper and pulp machine). However, they use only
one machine now. They keep backup by set up two machines – one is used and another is use
sometimes and one machine is not set up.
25
Machine 01 Machine 02 Machine 03

( 01 ).Capacity : 6 to 10 ( 01 ).Capacity : 5 to 7 Ton/day ( 01 ).Capacity : 7 to
Ton/day @22GSM @22GSM 10 Ton/day
@22GSM
( 02 ).Machine Speed: 160 ( 02 ).Machine Speed: 120 to 150 rpm ( 02 ).Machine Speed: 130
to 200 rpm to 160 rpm
2) Boiler machine:-
In JTP, they have 3 boiler machines for steam. Two machines are as2ton which is used now and
another is 6 ton which is comes few month ago and not set up.
Boiler Machine 01 and 02 Boiler Machine 03

01. Old Boiler (Made in Japan MIURA CO. 01. New Boiler ( Made in India
LTD ) THERMAX LTD )
02. Boiler Capacity 02 Ton / Hour (Per 02. Boiler Capacity 06 Ton / Hour
Boiler )
03. Fuel- Diesel 03. Fuel- Cole
3) Cutting machine:
They have 8 cutting machine. In this machine paper are given a size. All of them are running and
it seems that more machines are also needed as demand.
01.Sliter Re-Winder M/C No.01 02.Sliter Re-Winder M/C No. 02

( 01 ). Now m/c running condition ( 01 ). Now m/c Un-Stolling condition
( 02 ). M/C Speed- 300 mpm( May be ) ( 02 ). M/C Speed- 300 mpm ( May be )
( 03 ). M/c Width- 1.9 Meter ( 03 ). M/c Width- 1.9 Meter
1. Facial Machine 2. Facial Machine

( 01 ). Brand new m/c ( Made in China ) ( 01 ). Old m/c ( Made in China )
( 02 ). Machine Speed - ( 02 ). Machine Speed -
( 03 ).10 Lane m/c ( 03 ).02 Lane m/c
26
1. Pocket Tissue Wallet Machine 2. Pocket Tissue Wallet Machine

( 01 ). Old m/c ( Made in China ) ( 01 ). Brand New m/c ( Made in China )
( 02 ). Machine Speed - ( 02 ). Machine Speed -
1.Toilet Tissue Machine No.01 2. Toilet Tissue Machine No.02

( 01 ). Old m/c ( Made in China ) ( 01 ). Brand New m/c ( Made in China )
( 02 ). Manual Cutting & Rapping System ( 02 ). Auto Cutting, Rapping & Packing System
27
4) Automatic machine:-
They introduced one automatic machine few months ago. It is for Toilet paper only. It can make
100 packs in 30minutes. Though it is not start its production but soon it will give advantage to
the industry.
Transport and distribution:-
JTP has their own transport system named “Janani Courier and Parcel Service”. By using
their own transport system, it is easy for them to control, monitoring and make the cost reduce of
transport and distribution.
28
Vehicles:
JTP has 5 big truck and 5 small vehicles to use its own purpose. As their stock house are outside
of the factory. So after complete the product by using vehicles the transfer their product.
Chemicals:-
JTP buy chemicals from third party and government authorities. It is totally reserved, well
maintain and keep secret by its chemicals department.
Direct Labor:-
JTP has 30employees (Fixed) in factory and 15 employees in head office. They have more than
150 employees in marketing and sales department.
Indirect Labor:-
In JTP, they have around 100 temporary employees in factory.So,it is very hard for them to
maintain it. Most of them are not experienced and make time waste. It is a responsibility for
HRD to solve this problem.
Employees Cost:-
Employee records are maintained Cost center wise for direct allocation of employee cost.
Employee cost includes benefits payable such as over time, incentives, payments & provision for
leave salary.
The engagements of contractor’s labor for certain specific jobs/operations are identified and
allocated as direct labor cost.
The common labor payment is considered as either Works Overhead or Administration overhead
as per the nature of work.
Material Stores Accounting:-
Material cost:-
Imported material are accounted at the custom exchange rates prevailing at the time of receipts
include all incidental expenses like, insurance, freight, import duty, clearing charges etc. The
29
Stores issue is booked at moving weighted average rate/FIFO. Normal shortages/ excesses
observed during physical stock verification are periodically in consumption of respective
materials.
Packing Material:-
Packing material used for packing of reels and reams are identified on the basisof packing recipe
& charged to product. Secondary packing like polarization,etc. is considered as dispatching cost.
Consumption of wrapping paper manufactured and consumed as packing material is transferred

and valued at COP during the year.
Stores & Spares:-
Consumable Stores and spares are identified with consumption cost center. Machinery spares
issues are treated as repairs to Plant & machinery.
Basis for Inventory Valuation:-
Raw material, Packing material, Stores and Spares are valued at landed cost on moving weighted
average/ FIFO method.
Utilities:-
The cost of each utility like power, raw water, treated water, steam, Power generation plant,
cooling water and ETP is worked out for each of the above cost centers. The utilization of
utilities allocation/ apportionment is done on the basis of monthly utilization of these facilities by
recipient plants on technical basis and is reconciled.
30
Repair and maintenance:-
Machinery spares and repairs job labor bills are identified with respective plant and machinery.
Repairs to building are apportioned on the basis of area and other repairs are considered as plant
overheads or administration overheads.
Product Costs:
Product costs include all costs involved in acquiring or making a product. In the case of
manufactured goods, these costs consist of direct materials, direct labor, and manufacturing
overhead. Product costs attach to units of product as the goods are purchased or manufactured,
and they remain attached as the goods go into inventory awaiting sale. Product costs are initially
assigned to an inventory account on the balance sheet. When the goods are s old, the costs are
released from inventory as expenses (typically called cost of good s sold) and matched against
sales revenue. Product cost is also called Manufacturing costs.
Components of Product cost:

• Direct Materials.
• Direct Labor.
• Manufacturing Overhead.
Manufacturing Overhead:
Factory Overhead is generally defined as indirect labor, indirect material and all other factory
expenses that cannot conveniently be identified with nor charge d directly to specific job or
products or final cost objective s. Other terms used for factory overhead are factory burden,
manufacturing expense, manufacturing overhead, factory expense, and indirect manufacturing
cost.
Graphical presentation of manufacturing overhead which is used in JTP is as follows:
31
Classification of Manufacturing costs in other way:-
Prime cost:-
Prime cost is the sum of direct materials cost and direct labor cost.
Conversion Cost:
Conversion cost is the sum of direct labor cost and manufacturing overhead cost. The term
conversion is used to describe direct labor and manufacturing overhead because these costs are
incurred to convert materials into the finished product.
Non-manufacturing Costs:
Non-manufacturing costs are oft en divided i n JTP into two categories:
• Selling expenses.
• Administrative expenses.
32
Selling and Distribution Overheads:-
The element wise selling and distribution overheads are absorbed either on the basis of
quantity sold or the net sales realization depending upon nature of expense. Commission on
Sales is identified with each type of paper. Cost of the samples is ascertained separately and
considered as Selling and Distribution expenses.
Corporate Administrative Overheads:-
The Corporate administrative overheads are absorbed directly into the variety of paper on
the basis of sales realization of paper sold.
The company emphasis on direct identification of expenses with product/ plant andcommon
expenses as classified overheads as under:-
33
Plan Cost Centers and Cost Objects Cost Drivers

Water Paper Plant Production in Tonnage
Stock preparation & Paper Machine No 1 Machine Hour Utilization/Available
Slitting Machine Hour Utilization/Available
Cutting Machine Hour Utilization/Available
Finished and Packing Tonnage
Common Utilities and Services Cost Drivers

Pump House for water treatment Water Utilization (KL)
Boiler House for steam generation Steam Utilization (MT)
Power House for distribution of electricity Power Utilization(KWH)
Plant Maintenance (Work Shop) Estimated % of Utilization
Factory Overhead including Administration Purpose &Nature of expenses
Administration and Corporate overhead Purpose &Nature of expenses
Selling and Distribution Overhead Purpose &Nature of expenses
34
Cost Management Accounting
Chapter Four:
Findings
i. Janani tissue paper gets lots of popularity in a very short time in Bangladesh.
ii. Quality of Janani tissue paper is comparatively good like other popular brand.
iii. In Janani tissue paper, Human Resource Department (HRM) is not well planned.
They have many non-experience employees so their costing is increasing and time
is killing. Product quality is also hampering for this reason.
iv. More Quality Manager is needed. As Janani tissue paper use manual production,
there are so many lacking in observation in production.
v. In JTP, they have only one automatedmachine. It’s not sufficient as all.
vi. Marketing departments’ promotional activities are very poor.
vii. Shortages of employees make hamper in production. Irregular employees hamper
their production.
viii. JTP increase their packing costing buying from another.
ix. Boiler 400wt is not enough as production for this many problem arise such as-
tissue papers are so dry, over color, cannot usable etc.
x. JTP follows FIFO (First in First out) in their storage. However it is not giving
them good result as well.
xi. The relationships among each department are not so good enough. When problem
arise they take too much time to solve it.
xii. JTP provides their product with negotiable price.
35
Chapter Five:
Recommendation
i. In Janani tissue paper, Human Resource and Department (HRM) need take
necessary steps to make their employee into experienced employee. Without
experienced employee, they lost their valuable time, use recycle their own product
again and again. Cost are not reducing, it is increasing for the experienced
employee.
ii. More Quality Manager is needed. As Janani tissue paper use manual production,
only few people can take proper observation all.
iii. More Automated machine needed to introduce for product efficiency and it will
not only saving the time but also saving the cost.
iv. Marking departments should do more promotional activities to promote their own
product.
v. Shortages of employees make hamper in production. Janani tissue paper may
take expert and permanent employee and it will boost their production. Irregular
employee cannot boot their production rather than costing.
vi. If JTP produce own packing materials then it will reduce their own cost and can
be used in their other industries.
vii. In JTP, they have a powerful boiler machine around 1000wt. They need set it up
quickly and boost their production.
viii. JTP should follow LIFO (Last in First out) in their storage. It will help them to
find out about production quality and also reserve good quality product in storage.
ix. In JTP, every department should increase their communication system as soon as
possible.
36
Conclusion
As we have seen, cost is a complex subject that reaches far beyond the individual budget of any
given project. Different areas of the company use cost information in different ways and the
information must be formulated to suit the company are that it serves.
When project managers are planning a project and in particular are creating a project budget,
knowledge of the different kinds of costs that the project will incur is essential to successful
budgeting. In addition, an understanding of overall cost at a particular company in a specific
industry will help project managers create budgets that take cost into proper consideration and
deliver winning results.
Cost accounting information is designed for managers. Since managers are taking decisions only
for their own organization, there is no need for the information to be comparable to similar
information from other organizations. Instead, the important criterion is that the information
must be relevant to decisions that managers operating in a particular environment of business
including strategy make. Cost accounting information is commonly used in financial accounting
information, but first concentrating in its use by managers to make decisions.
37
References
1. Managerial Accounting
Ray H. Garrison
Eric W. Noreen
2. Intermediate Accounting
Kieso, Weygandt, Warfield
10th Edition
3.“Cost Accounting: A Managerial Approach”,
Prentice Hall, Inc.; 12th Edition, 2007.
4. “International Financial Reporting Standard”;
International Accounting Standard Board; as approved at 1 January, 2008.
Websites:
http://financenmoney.wordpress.com/2011/02/07/differences-between-
financial-accounting-management-accounting-and-cost-accounting/
dspace.bracu.ac.bd/bitstream/10361/580/1/vol%203%20No.%202.13.pdf
http://en.wikipedia.org
http://www.iasplus.com
http://www.jananigroupbd.com/venture/janani-tissue-paper-industries/
Management Accounting,1/e by paresh shah
Management Accounting, -Khan &jain
http://www.casbicwal.org/casb/indes.asp
Principles of Cost Accounting, 16thed. By Edward J. Vanderbeck
38

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Management Accounting Practice

At Janani Tissue Papers LTD

1.1 Origin of the report:

1.2 Objective of the report:

The objectives of the report are as follows:-

1.3 Scope of the report:

1.4 Methodology of the report:

Data regarding the organization profile collected in the following ways:

o Careful observation of various activities of related section of that particular

 Organizational Brochures/ Annual Reports.

Data Collection Techniques:

1.5 Organization of the study:-

Janani Paper Industries (PVT).LTD — venture of Janani Group

Balaka Press and Publications — venture of Janani Group

Bookman Printers & Publications — venture of Janani Group

Faysal Book Binding — venture of Janani Group

Sarker Printing & Publishing — venture of Janani Group

Janani Stationary Product — venture of Janani Group

Established in 2014, JananiBallpen Industries is the largest stationary manufacturer in

Year-1953, Gorib Shah Sarak, Jessore.

Janani Plastic Industries — venture of Janani Group

Founder : Late Abdul GafurSarker

Time and Place

Appearance as Publisher : 1980

Books of Kindergarten, Primary (supporting books for creative

Present Location & 38, Banglabazar, Dhaka-1000;Daratana Road, Jessore;KD Ghosh

Offset Technology in 1990 (First in Khulna Division).

1.1. Background of Janani Tissue Paper:-

1.2. Mission Statement:-

1.5. Factory Location:-

S.L Name of the product Quantity M.R.P

S.L Product Name M.R.P

S.L Product name Size M.R.P

2 Janani Kitchen 1 Roll 57

3 Janani Kitchen 2 Roll 68

4) Gold Toilet Tissue :-

Gold toilet tissue maintains high quality than other toilet

5) White Toilet Tissue :-

White toilet tissue maintains good quality than other

6) Pink Toilet Tissue :-

S.L Name M.R.P

Paper Napkin is medium size tissue paper. It

Hotel napkin is a milestone product of JTP. It

Super napkin introduced in few months ago. It

S.L Product Name M.R.P

1 Janani Napkin Tissue-100pes(13”×13”) 48

10) Hand Towel :-

S.L Product Name Quantity Price

2 Departments of Janani Tissue Paper:

The major departments of JTP are:

2.1 Brief Description of Accounts & Finance department and others:-

Accounts & Finance Department:-

. The sections of Accounts and Finance department are as follows:

• Costing and budgeting

I. Costing and Budgeting:-

Some activities of this department are as follows:

 It looks the cash planning and management.

III. Tax,Payroll and Legal Affairs:-

2.2 Brief description of others departments:

• Pulp raw materials.

2. Planning & Inventory Department

3. Human Resource Department

Major Activities of HR departments are as follows: