E4-E5(Management)
Cost Management
for BSNL internal circulation only
Introduction of Accounting
Financial
Accounting
Cost Accounting
for BSNL internal circulation only
Management
Accounting
Definitions in Cost Accounting
COST
COST CENTRE
COST UNIT
COST ACCOUNTING
COST AUDIT
COST ALLOCATION
for BSNL internal circulation only
COST CONCEPTS
COST APPORTIONMENT
COST MANAGEMENT
for BSNL internal circulation only
COSTING IN BSNL
References
COST ACCOUNTING RECORDS (TELECOMMUNICATIONS) RULES,
2002
COST AUDIT REPORT RULES, 2001
CIRCULAR NO. 20 REGARDING REVISED ACCOUNTING PROCEDURE
& ACCOUNT CODE W.E.F. 1-4-2003
CIRCULAR NO. 23 REGARDING MAINTENANCE OF COSTING
RECORDS AS PER COST ACCOUNTING RECORDS (TELE) RULES
2002.
for BSNL internal circulation only
OBJECTIVES
To maintain Cost Accounting Records according to Cost
Accounts Records (Telecommunication) Rules,2002.
To compile Cost Centre wise cost information.
To allocate/ apportion the cost of service Cost Centre to
Operation Cost Centers or Service-Products.
for BSNL internal circulation only
OBJECTIVES
To determine the cost of different service-products.
To identify profitable/non-profitable operation centers.
To generate data to facilitate fixing tariff.
To provide essential cost information for strategic decision-making.
To provide base for cost reduction programme.
for BSNL internal circulation only
OBJECTIVES
To generate cost information for reports for
submission to Regulatory Authority or other bodies.
To prepare statements of Cost & Revenue for Rural
Operation Centers for claim of subsidy/grants from
Government.
for BSNL internal circulation only
COST CENTRE
Operation Cost
Centres
for BSNL internal circulation only
Service Cost
Centres
Allocation & Apportionment
Operation Cost Centre
Service Cost Centre
Services
Basic
Mobile
Internet
S1(Civil)
S2(Elec)
1500
------
---------
--------
--------
-----
1200
---------
--------
--------
-----
------
1000
--------
--------
-----
------
--------
300
--------
-----
------
--------
--------
600
Allocation
1500
1200
1000
300
600
Apportion
300
300
300
(-) 300
(-) 600
1800
1500
1300
Nil
Nil
CP
for BSNL internal circulation only
Cost
Cost of production
Operation Cost
Service Cost
25000
100000
4/28/2011
for BSNLALTTC
internal
circulation only
GHAZIABAD
kkr
11
Operation Cost Centers
1. SSAs OF METRO DISTRICTS
OPERATION
MAINTENANCE
2. MAINTENANCE REGIONS
ADMN.
PROJECT EXECUTION
3. DATA NETWORK
INTERNET SERVICES
for BSNL internal circulation only
SERVICE COST CENTRES
CO BSNL
ADMN PLANNING
CIRCLE OFFICES
ADMN
TRAINING CENTRES
TRAININGS
FACTORIES
EQUIPMENT
CIVIL DIV.
CIVIL WORK
ELEC. DIV.
ELEC WORK
for BSNL internal circulation only
SERVICE PRODUCTS
(SERVICES OFFERED BY BSNL)
SERVICE PRODUCTS
CODE
BASIC
01
NLDS
02
ILDS
03
CMTS
04
TELEX
05
TELEGRAPH
06
WILL
07
LEASED CIRCUIT
08
INTERNET
09
for BSNL internal circulation only
COST ACCOUNTING RULES HAVE SPECIFIED
MAINTENANCE OF NINE SETS OF DIFFERENT
INFORMATION :-
1.
Assets-(service-Product wise)
2.
Costs (Cost centre/service-Product-wise)
3.
Revenue Service product wise
4.
Activity- Operation and Service product wise
5.
Statistical / Technical records
6.
Captive Consumption
7.
Reconciliation of Cost & Financial Accounts
8.
Adjustment of Cost Variances
9.
Records on Related Party transactions
for BSNL internal circulation only
Required Proforma
PROFORMAS
STATEMENT
To be prepared
/maintained by
ASSETS REGISTER
All Cost Centers
OPERATION
Operation Cost Centers
COST STATEMENT
for BSNL internal circulation only
Required Proforma
PROFORMAS
STATEMENT
PREPARED/
MAINTAINED BY
Part I
Operation Cost Centers
Statistical
Information
C
Part II
Operation Cost Centers &
Service Costs
Service Cost Centers
Statements
for BSNL internal circulation only
Required Proforma
PROFORMAS
Operation Cost Centers
Prepared/ maintained
by
Apportionment among
different Service-
All
SSAs Consolidation will
be done at Telecom Circles.
Products
and their margin.
for BSNL internal circulation only
Financial Accounting
Financial accounting focuses on reporting to external
parties. It measures and records of business transactions
and provides financial statements that are based on
Generally Accepted Accounting Principles
for BSNL internal circulation only
(GAAP)
Cost Accounting
Cost Accounting provides information for
management accounting & Financial accounting.
Cost accounting measures and reports financial
and non financial information relates to the cost
of acquiring or utilizing resources in an
organization.
for BSNL internal circulation only
Management Accounting
Management accounting measures and reports
financial & non financial information that helps
managers make decisions to fulfill the GOALS of
an Organization
for BSNL internal circulation only
COST
Cost
is a measurement, in monetary terms, of the
amount of resources used for the purpose of production
of goods or rendering services.
for BSNL internal circulation only
Cost Centre
Cost center is the smallest segment of activity or area of
responsibility for which costs are accumulated. Cost
Centre may be a Location , or Item of equipment. Such
as SSAs.
Operation Cost Centres
Service Cost Centres
for BSNL internal circulation only
COST UNIT
A single unit of any product or service is known as COST
UNIT
Cost Unit: Unit of measurement of goods manufactured.
(per piece, per kilogram, per metre, per scooter, per
motor car)
for BSNL internal circulation only
COST ALLOCATION
Cost allocation is the process of charging the full amount
of cost to a particular costs center. This is possible when
the nature of expenses of expense is such that it can be
easily identified with a particular cost centre.
for BSNL internal circulation only
Cost Apportionment
It is a process of splitting up an item of cost and
charging it to the cost centers on an equitable
basis.
for BSNL internal circulation only
THANKS
for BSNL internal circulation only
