Cost Management Report

1. (AICTE APPORVED & AFFILITED BY GUJARAT TECHNOLOGICAL UNIVERSITY)
Submitted To:-
SONAM SADHU (Assistant Professor)
In Partial fulfillment of the requirement
For the award of the degree of
Masters of Business Administration (Semester- 2)
Prepared By:-
N i r a j G B h a d u w a l a
Subject: -Cost and Management Accounting
Enrollment No: - 138220592022
Academic year: - 2013-2014
A
PROJECT REPORT ON
COST SHEET ANALYSIS
OF COLGATE PALMOLIVE LTD

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PREFACE
The M.B.A curriculum has been designed to provide the further manager
ample practical exposure to business world. The project program is
necessary and essential part of the M.B.A degree course. It helps the
student to gain the knowledge about various aspects of market, consumer
and industry.
“Management is the Process of Planning, Organizing, Staffing and
Controlling the activates of various resources within the organization
through systematic, coordinated, and cooperative human efforts to
achieve organizational objectives.”
Basically when we are playing with computer in every part of life, I used it
in my project not for the ease of my but for the ease of result explanation
to those who will read this project. The project presents the report of Cost
Sheet analysis of Cost and Management Accounting.
I had toiled to achieve the goals desired. Being a neophyte in this highly
competitive world of business, I had come across several difficulties to
make the objectives a reality. If anywhere something is found not in
tandem to the theme then you are welcome with your valuable
suggestions. My project Cost Sheet analysis of Cost and Management
Accountingis based on study conducted by me under the guidance of
Sonam Sadhu. It gives me pleasure to prepare the report on this
company.
I believe that my project report will have been very helpful to the practical
knowledge in the field of management of any organization.
I could Ancash this opportunity to the best of my incompetence, zeal,
perfection and academic knowledge and I am keen to make it on going
journey throughout my life as I strongly believe that learning is a journey
not a destination.

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ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.” I
would like to extend my sincere & heartfelt obligation towards all the
personages who have helped me in this endeavor. Without their active
guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I feel great pleasure to prepare and present report of principles of
management and information being gathered and so much knowledge
and experience, feeling of gratitude arises. Firstly I would like to thank my
college “Institute of Technology And Management” and my dean
Academics Dr. Sanjay Kumar Vij for giving me an opportunity to learn
from this project. I would like to take this opportunity to express my
sincere thanks and gratitude to my subject teacher MissSonam Sadhu for
providing their guidance of my report without which I would not complete
this project.
I am thankful to the organization for providing their time for giving me
information on their website I would even like to thank the organization for
their valuable contribution to the county being largest food chain in the
nation.
At last but not least I am thankful to all who have helped me directly or
indirectly for completion of my project report
Lastly any omission in this brief acknowledgement does not mean lack of
gratitude.
NIRAJ BHADUWALA
(INSTITUTE OF TEHNOLOGY AND MANAGEMENT)

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CONTENTS OF TABLE
Sr. No Contents Page
No.
1 PREFACE 0-1
2 ACKNOWLEDGEMENT 1-2
3 HISTORYAND INTRODUCTION OF
ORGANIZATION
3-5
5 COST SHEET INFORMATION 5-6
6 COST SHEET 6-9
7 COST SHEET ANALYSIS 9-10
8 IMPORTANT FORMULAS 10-11
9 WIBILOGRAPHY 11-12

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HISTORY AND INTRODUCTION OF ORGANIZATION
The Colgate-Palmolive Companyis an American multinational consumer products company
focused on the production, distribution and provision of household, health care and
personal products, such as soaps, detergents, and oral hygiene products (including
toothpaste and toothbrushes). Under its "Hill's" brand, it is also a manufacturer of
veterinary products. The company's corporate offices are on Park Avenue in Midtown
Manhattan, New York City.
In 1806, William Colgate, an English soap and candle maker, opened up a starch, soap and
candle factory on Dutch Street in New York City under the name of "William Colgate &
Company". In 1833, he suffered a severe heart attack, stopping his business from selling.
But after a couple of years of recovery he continued with his business. In the 1840s, the
firm began selling individual cakes of soap in uniform weights. In 1857, William Colgate died
and the company was reorganized as "Colgate & Company" under the management of
Samuel Colgate, his son, who did not want to continue the business but thought it would be
the right thing to do. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In
1873, the firm introduced its first toothpaste, aromatic toothpaste sold in jars. His company
sold the first toothpaste in a tube, Colgate Ribbon Dental Cream (invented by the dentist
Washington Sheffield), in 1896. In 1896, Colgate hired Martin Ittner and under his direction
founded one of the first applied research labs.[3]
By 1908 they initiated mass selling of
toothpaste in tubes. His other son, James Boorman Colgate, was a primary trustee of
Colgate University (formerly Madison University).
In Milwaukee, Wisconsin, the B.J. Johnson Company was making a soap entirely of palm oil
and olive oil, the formula of which was developed by B.J. Johnson in 1898. The soap was
popular enough to rename their company after it - "Palmolive".[4]
Around the start of the
20th century Palmolive, which contained both palm and olive oils, was the world's best-
selling soap. Extensive advertising included the radio programs The Palmolive Hour (1927-
1931) and Palmolive Beauty Box Theater (1934-1937). A Missouri-based soap manufacturer
known as Peet Brothers merged with Palmolive to become Palmolive-Peet. In 1928,
Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet
Company. In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive
Company", the current name.

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Colgate-Palmolive has long been in fierce competition with Procter & Gamble, the world's
largest soap and detergent maker. P&G introduced its Tidelaundry detergent shortly after
World War II, and thousands of consumers turned from Colgate's soaps to the new product.
Colgate lost its number one place in the toothpaste market when P&G started putting
fluoride in its toothpaste. In the beginning of television, "Colgate-Palmolive" wished to
compete with Procter & Gamble as a sponsor of soap operas. The company sponsored
many shows in part, and fully sponsored the serial The Doctors.
George Henry Lesch was president, CEO, and chairman of the board of Colgate-Palmolive in
the 1960s and 1970s, during that time transformed it into a modern company with major
restructuring.
In 2005, Colgate sold the under-performing brands Fab, Dynamo, Arctic Power, ABC, Cold
Power and Fresh Start, as well as the license of the Ajax brand for laundry detergents in the
U.S., Canada and Puerto Rico, to Phoenix Brands, LLC as part of their plan to focus on their
higher margin oral, personal, and pet care products.
In 2006, Colgate-Palmolive announced the intended acquisition of Toms of Maine, a leading
maker of natural toothpaste, for US $100 million. Tom's of Maine was founded by Tom
Chappell in 1970.
Today, Colgate has numerous subsidiary organizations spanning 200 countries, but it is
publicly listed in only two, the United States and India.
On October 25, 2012, the company announced it will cut more than 2,310 workers, or 6
percent of its workforce, by the end of 2016 in a push to make the consumer products
company more efficient

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COST SHEET INFORMATION
The information obtained for the cost sheet analysis is taken from the Colgate-Palmolive’s
Annual report 2013-14.
Particulars Amt in (Rs)
Stock of Raw Materials
Opening 4928.10
Closing 3408.96
Purchase of Materials 97635.60
Other expenses 1, 00,736.96
Cost of Direct Materials Consumed 1, 99,891.7
Direct or productive wages 21,803.39
Power and Fuel 19, 58.18
Rates and Taxes 20, 30.29
Insurance 2, 78.75
Repairs and Maintenance
-- Plant and Machinery 11, 14.67
– Buildings 1, 52.56
– Others 11.48
106, 22.31
Freight and Forwarding Charges
Scrap 141.3
Work in Progress
Opening 8, 33.73
Closing 735.30
Office salaries 21,803.3
Director’s Fees 37.45
Office Rent and Rates 1,012.34
Furniture and fixture 1,252.31
Director’s Traveling Charges 2,967.72
Finished goods
Opening 1, 03, 49.57
Closing 91, 71.61
Advertisement35,459.23
Outside Services 3,559.12
Sales Director’s Fees 25.00
Profit 496, 75
Sales 3, 244, 51
Prepare cost sheet for the year ending 31 March 2013.

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COST SHEET OF COLGATE
Cost sheet of Colgate Palmolive for the year ending 31stMarch 2013
Units produced
Particulars Total cost
(Rs in laks)
Cost per
unit(Rs in
laks)
Opening Stock Raw Materials Opening stock 4,928.10
Add: Purchases 97,635.60
Add: Other expenses 1,00,736.96
Less: Closing Stock of Raw Materials
3,408.96
Cost of Direct Materials Consumed 1,99,891.7
Direct or productive wages 21,803.39
Prime Cost 2,21,695.09
Add: Works or Factory Overheads:
Power and Fuel 1,958.18
Rates and Taxes 2,030.29
Insurance 278.75
Repairs and Maintenance
-- Plant and Machinery 11,14.67
– Buildings 1,52.56
– Others 11.48
1,278.71
FreightandForwardingCharges
10,622.31
Less: Sale of Scrap 141.34

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Add: Opening stock of WIP 833.73
Less: Closing stock of WIP
735.30
Work Cost 2,37,820.42
Add: Office and Administrative Overheads:
Office salaries 21,803.39
Director’s Fees 37.45
Office Rent and Rates 1,012.34
Furniture and fixture 1,252.31
Director’s Traveling Charges
2,967.72
Cost of Production 2,61,956.6
Add: Opening stock of Finished Goods 10,349.57
Cost of Goods Available for Sale 2,72,306.17
Less: Closing Stock of Finished Goods 9,171.61
Cost of Goods Sold 2,63,134.56
Add: Selling and Distribution Overheads:
Advertisement 35,459.23
Outside Services 3,559.12
Sales Director’s Fees 25.00
Cost of sales(or Total Cost) 3,02,152.91

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Profit 49,675
Sales 324,451

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ANALYSIS OF COST SHEET
 The company’s direct cost of materials consumed is around
199891.7 which include opening stock of raw materials, purchase
and other expenses in the year 2014.
 After adding productive wages of 21803.39 rs to it the it has the
prime cost of rs 2, 21,695.
 The total factory and work overhead of Colgate-Palmolive Ltd
after adding opening stock of WIP and subtracting Closing stock of
WIP is 2, 37,820.The major work and factory OH includes power
and fuel, Rates and Taxes,Insurance, Repairs and Maintenance,
fright and forward charges.
 The office and administrative overhead of the company includes
2, 61,956.6 which is the total cost of production. It mainly includes
office salaries, directors fees, office rent and rates,furniture and
fixtures, Directors Travelling Charges.
 The total selling and Distribution overhead of the company which
involves advertisement expenses, outside service, sales director’s
fees and the has total cost 302152.91.therefore we can say that
the company’s total cost of sale is much higher in the year 2014.
 The company’s total profit is 49,675 and after adding the profit
the total sales is 3, 24,451.

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IMPORTANT FORMULAS
PVR= Cost/Sales
Therefore PVR= 3, 02,152.91
3, 24,451
=0.931
BEP(Rs) = fixed Cost/PVR
Therefore BEP= 2,507
0.931
=2692.80 Rs
BEP(Units)= fixed Cost/Cost
Therefore BEP (Units) = 3, 29, 91
3, 02,152.91
=0.109 Units
MOS= Profit/PVR
Therefore MOS= 496.75
0.931
=533.56 Rs

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WIBILOGRAPHY
 www.moneycontrol.com
 www.colgate.co.in
 www.wikipedia.org/wiki/Colgate-Palmolive