FIELD PROJECT for bcom students in second year
- 2. A STUDY OF COST SHEET , TENDER , QUOTATION
- 3. OBJECTIVES: 1) TO STUDY THE COST SHEET AND ITS OBJECTIVES. 2) TO STUDY THE DIFFERENCE BETWEEN TENDER AND QUOTATION. 3) TO STUDY THE VARIOUS TYPE OF TENDER AND QUOTATION.
- 4. COST SHEET COST SHEET IS A STATEMENT DESIGNED TO SHOW THE OUTPUT OF A PARTICULAR ACCOUNTING PERIOD ALONG WITH BREAKUP OF COST. COST SHEET IS A STATEMENT SHOWING COST OF PRODUCTION OF A PARTICULAR PRODUCT.THE ACTUAL COST OF MATERIAL, LABOUR AND OVERHEAD RELATED TO THE PRODUCT ARE RECORDED IN THE COST SHEET. THE DATA INCORPORATED IN A COST SHEET ARE COLLECTED FROM VARIOUS STATEMENT OF ACCOUNTS WHICH HAVE BEEN WRITTEN IN COST ACCOUNTS EITHER DAY-TO-DAY OR REGULAR RECORDS. COST SHEET IS A MEMORANDUM STATEMENT. THUS, A COST SHEET IS A STATEMENT PREPARED BY SHOWING THE ITEMS OF COST OF PRODUCTION AND SERVICE WHICH ARE ANALYSEDBY THEIR NATURE, ELEMENT, FUNTION OR BEHAVIOUR. IT SHOULD ALSO NEED THAT THE NON COST ITEMS LIVE DIVIDEND AND INCOME TAX PAID SHOULD NOT BE INCLUDED IN THE COST SHEETS BECAUSE THEY ARE THE APPRECIATION OF PROFIT.
- 5. OBJECTIVES OF A COST SHEET: 1. COST CONTROL: HELPS IN MONITORING AND CONTROLLING COSTS THROUGHOUT THE PRODUCTION PROCESS. 2. BUDGETING: AIDS IN PREPARING BUDGETS BY PROVIDING DETAILED COST INFORMATION. 3. PRICING DECISION: ASSISTS IN DETERMINING THE SELLING PRICE OF PRODUCTS BY UNDERSTANDING TOTAL COSTS. 4. PROFITABILITY EVALUTION: FACILITIES AVALUTION OF OPERATIONAL EFFICIENCY AND COST-EFFECTIVENESS. 5. FINANCIAL REPORTING: PROVIDES ESSENTIAL DATA FOR FINANCIAL STATEMENTS AND REPORTS. 6. DECISION MAKING: SUPPORTS STRATEGIC DECISION-MAKING REGARDING PRODUCTION,PRICING AND INVESTMENT. 7. INVENTORY VALUATION: ASSISTS IN DETERMINING THE VALUE OF INVENTORY FOR FINANCIAL REPORTING PURPOSES.
- 6. IMPORTANCE OF COST SHEET: 1) THE MAIN OBJECTIVE OF COST SHEET IS TO ASCERTAIN THE COST OF PRODUCT. COST SHEET HELPS IN ASCERTAINMENT OF COST FOR THE PURPOSE OF DETERMINING THE COST AFTER THEY ARE INCURRED. IT ALSO HELPS TO ASCERTAIN THE ACTUAL COST OR ESTIMATED COST OF A JOB. 2) TO FIX THESELLING PRICE OF A PRODUCT OR SERVICE IT IS ESSENTIAL TO PREPARE THE COST SHEET.IT HELPS IN FIXING SELLING PRICE OF A PRODUCT OR SERVICE BY PROVIDING DETAILED INFORMATION OF THE COST. 3) FOR CONTROLLING THE COST OF A PRODUCT IT IS NECESSARY FOR EVERY MANUFACTURING UNIT TO PREPARE A COST SHEET.ESTIMATED COST SHEET HELPS IN THE CONTROL OF MATERIAL COST, LABOUR COST AND OVERHEAD COST AT EVERY POINT OF PRODUCTION. 4) IT HELPS IN TAKING IMPORTANT DECISION BY THE MANAGEMENT SUCH AS WHETHER TO PRODUCE OR BUY A COMPONENT,WHAT PRICES OF GOODS ARE TO BE QUOTED IN THE TENDER,WHETHER TO RETAIN OR REPLACE ON EXISTING MACHINE ETC.
- 8. TENDER WHEN THERE ARE MORE THAN ONE SUPPLIER DEALING WITH GOODS AND SERVICES A TRADER, BUSINESS-MAN HAS TO SELECT THE BEST SUPPLIER GIVING QUALITY GOODS AND SERVICES. THE SELECTION OF SUCH A SUPPLIER IS DECIDED BY ISSUING TENDERS. A TENDER IS A WRITTEN LETTER OR AN ADVERTISEMENT GIVEN IN NEWSPAPER, INVITING THE PROSPECTIVE SUPPLIERS TO QUOTE THEIR LOWEST PRICE AND OTHER TERMS AND CONDITIONS OF SALE. THUS,TENDER IS ONE OF THE MOST COMMON METHOD OF DECIDING THE SUPPLIER GOODS OR GIVING SERVICES. IN THIS METHOD,THE PURCHASER WORKS OUT THE DETAILS FOR REQUESTING QUOTATION WHICH GENERALLY INCLUDE THE FOLLOWING: 1. NAME AND FULL SPECIFICATION OF GOODS. 2. QUANTITY OF ORDER. 3. PLACE WHERE GOODS ARE TO BE DELIVERED. 4. OTHER TERMS AND CONDITIONS OF SALE. THUS , FOR INVITING THE TENDERS, FIRST TENDER FORMS GIVING ALL DETAILS SHOULD BE PREPARED. GENERALLY,TENDERS ARE INVITED BY GIVING ON ADVERTISEMENT IN THE NEWSPAPER OR SOMETIMES THE BLANK TENDER FORMS ARE SUPPLIED TO THE PROBABLE SUPPLIER. NORMALLY,TIME LIMIT IS GIVEN FOR SUBMITTING THE TENDER AND SOME DEPOSIT ALONG WITH THE TENDER.
- 9. OPEN TENDER: AN OPEN TENDER REFERS TO A PROCUREMENT PROCESS WHERE AN ORGANIZATION INVITES BIDS FROM ANY INTERESTED PARTY TO SUBMIT PROPOSALS FOR A PROJECT OR SERVICES.THIS APPROACH IS TYPICALLY USED TO PROMOTE TRANSPARENCY AND COMPETITION, ALLOWING MULTIPLE VENDORS TO PARTICIPATE. IT OFTEN INVOLVES PUBLIC ADVERTISEMENT OF THE TENDOR DETAILS AND IS COMMONLY USED IN GOVERNMENT AND LARGE SCALE PROJECTS .
- 10. SINGLE TENDER: A SINGLE TENDER REFERS TO A PROCUREMENT PROCESS WHERE A CONTRACT IS AWARDED TO A SINGLE SUPPLIER WITHOUT COMPETITIVE BIDDING.THIS APPROACH IS OFTEN USED WHEN THERE IS ONLY ONE SUITABLE SUPPLIER AVAILABLE, OR IN SITUATIONS REQUIRING QUICK PROCUREMENT FOR REASONS LIKE EMERGENCIES OR SPECIALIZED NEEDS. IT CONTASTS WITH COMPETITIVE TENDERING,WHERE MULTIPLE BIDS ARE INVITED.
- 11. GLOBAL TENDER: A GLOBAL TENDER IS A PROCUREMENT PROCESS THAT INVITES BIDS FROM SUPPLIERS OR CONTRACTORS WORLDWIDE.THIS APPROACH AIMS TO ENSURE A DIVERSE RANGE OF PROPOSALS, COMPETITIVE PRICING, AND ACCESS TO THE BEST PRODUCTS OR SERVICES AVAILABLE INTERNATIONALLY. GLOBAL TENDERS ARE OFTEN USED FOR LARGE PROJECTS OR PURCHASES THAT REQUIRE SPECIALIZED EXPERTISE OR RESOURCES NOT READILY AVAILABLE LOCALLY.
- 12. LIMITED TENDER: LIMITED TENDER REFERS TO A TYPE OF PROCUREMENT PROCESS WHERE ONLY A SELECT NUMBER OF SUPPLIERS ARE INVITED TO SUBMIT BIDS OR PROPOSALS.THIS APPROACH IS TYPICALLY USED FOR SPECIFIC PROJECTS OR REQUIREMENTS WHERE THE BUYER WANTS TO CONTROL THE POOL OF POTENTIAL BIDDERS, ENSURING THEY MEET CERTAIN CRITERIA OR QUALIFICATIONS. IT CAN STREAMLINE THE SELECTION PROCESS AND ALLOW FOR MORE FOCUSED EVALUTION.
- 13. QUOTATION QUOTATION ARE QERUIRED TO BE GIVEN BY THE SUPPLIER TO THE PURCHASES OF SUPPLY OF SMALL QUANTITIES. EVEN IF AN INDIVIDUAL PERSON WANTS TO BUY A PRODUCT DURABLE e.g.TV HE BEEDS A QUOTATIONFROM THE SUPPLIER OR DEALER.THUS THERE IS A DIFFERENCE BETWEEN A TENDER AND QUOTATION. A TENDER IS USUALLY GIVEN FOR UNDERTAKING HUGE CONTRACTS WHILE A QUOTATION IS GIVEN FOR SMALL QUANTITIES. AGAIN TENDER CAN BE INVITED FROM ABROAD BUT QUOTATION ARE USUALLY GIVEN FOR CUSTOMERS WHO ARE WITHIN THE COUNTRY. DEFINITION: A QUOTATION CAN BE DEFINE AS A FORMAL STATEMENT OF PROMISE BY POTENTIAL SUPPLIER TO SUPPLY THE GOODS OR SERVICES REQUIRED BY A BUYER, AT A SPECIFIED PRICES AND WITHIN A SPECIFIED PERIOD. A QUOTATION MAY ALSO CONTAINS TERMS OF SALE AND PAYMENT AND WARRANTIES. ACCEPTANCE OF QUOTATION BY THE BUYER CONSTITUES AN AGREEMENT BINDING ON BOTH PARTIES.
- 14. DIFFERENCE BETWEEN TENDER AND QUOTATION: QUOTATION TENDER 1. QUOTATION IS A DOCUMENT OF TENDER REFERS TO A PROCESS OF SETTING OUT THE ESTIMATED COST SOLICITING SUPPLIERS TO BID ON THE FOR SUPPLYING OR PROCURING GOODS OR SERVICES NEEDED BY THE SOMETHING. BUYER. 2. THE SCOPE FOR QUOTATION IS THE SCOPE FOR TENDER IS LARGE. NARROW 3. THE QUOTATION CONSIST OF THE TENDER CONSIST OF PRICE AS WELL PRICE AS QUALITY. 4. QUOTATION IS THE ANSWER GIVEN TENDER IS THE ENQUIRY FLOATED BY BY THE ONE SUPPLIER TO TENDER THE PURCHASER FOR THE PURCHASES ENQUIRY IN TERMS OF RATE QUOTED OF ANY MATERIAL, COMPLETION OF FOR EACH ITEM. WORK ETC. 5.QUOTATION IS USUALLY GIVEN FOR TENDER IS USUALLY GIVEN TO LARGE SMALL QUANTITY. QUANTITY.