Beruflich Dokumente
Kultur Dokumente
SUBMITTED BY,
MANOJ M BHAT
Reg. No: 09TUCMA044
Under the guidance of
Dr. D.GOPALAKRISHNA, MBA, M.com, LLB, PhD
READER, CBSMS
2009-2011
STUDIES
CANARA BANK SCHOOL OF MANAGEMENT STUDIE S
BANGALORE - 560001
CANARA BANK SCHOOL OF MANAGEMENT STUDIES
(Department of Management Studies, Bangalore University)
Central College Campus, Bangalore 560001, Karnataka.
GUIDE CERTIFICATE
This is to certify that MANOJ M BHAT has prepared this project report
entitled “A RESEARCH STUDY ON PROJECT COST ACTUALISATION PROCESS”
under my guidance. The report submitted by him has been successfully completed and
reflects his hard work and sincere effort.
the project, hence such expenses are not under the purview of the
actualization process.
4. The total of point no 2 and 3 above, constitute the total project cost.
Project
Direct Costs Cost=
Direct Indirect Costs
+
Indirect
The Indirect costs must also be distributed an all the projects and also within the
projects, in the same proposition. This process can be explained with the help of
a flowchart (on the next page)
FLOWCHART FOR ACTUALISATION PROCESS
START
END
This procedure can be used to find the cost of each project.
The final table after distribution will appear in the following way:
INDIRECT COST DETAIL:
INDIRECT COSTS
BUSINESS LEVEL: CENTRAL LEVEL:
SALES & SERVICE 30,000 HR FUNCTIONS 15,000
QUALITY 5,000 EMPLOYEE WELFARE 5,000
HIGHER MANAGEMENT 7,500 CONTROLL/FINANCE 15,000
UTILITIES & INFRASTRUCTURE 7,500 TECHNICAL FUNCTIONS 5,000
TOTAL - ( j ) 50,000 CORPORATE OVERHEAD 5,000
PROJECT MGMT 3,000
OTHER ADMINISTRATION 2,000
TOTAL - ( k ) 50,000
TOTAL INDIRECT COST - (y=j+k ) 1,00,000
“Value Addition” in hours is shown in the table under each dept. booking the
hours.
DIRECT COST TABLE:
PROJECT A B C D TOTAL
MATERIAL - ( a ) 6,500 8,000 4,000 4,000 22,500
VALUE ADDITION:
DESIGN HRS - ( b ) 10 5 30 0 45
MANUFACTURING HRS - ( c ) 15 10 0 60 85
TOTAL - (d=a+b) 25 15 30 60 130
GRAND TOTAL DIRECT COST -
(a+b*200+c*100) 10,000 10,000 10,000 10,000 40,000
The indirect costs will remain the same as in the previous illustration.
ALLOCATION:
PROJECT A B C D TOTAL
DESIGN - (f=b*x*l) 7,692 3,846 23,077 0 34,615
MANUFACTURING - (g=c*x*l) 11,538 7,692 0 46,154 65,385
GRAND TOTAL INDIRECT COST-
(h=f+g) 19,231 11,538 23,077 46,154 1,00,000
TOTAL COST=DIRECT COST+INDIRECT COST
PROJECT A B C D TOTAL
TOTAL COST
MATERIAL - ( a ) 6,500 8,000 4,000 4,000 22,500
VALUE ADDITION:
DESIGN - ( b*200 ) 2,000 1,000 6,000 0 9,000
DESIGN ALLOCATION - ( f ) 7,692 3,846 23,077 0 34,615
MANUFACTURING - (c*100) 1,500 1,000 0 6,000 8,500
MANUFACTURING ALLOCATION
-(g) 11,539 7,692 0 46,154 65,385
TOTAL PROJECT COST -
(a+b*200+c*100+f+g) 29,231 21,538 33,077 56,154 1,40,000
The table appears as above after the distribution of the indirect costs.
Project D 0 0 0
Project C 0 0 0