Overall cost in cement companies and its percentage to total cost: A case study

There is the problem of weak and irregular profitability in the Indian cement industries as a result as this the issue of analysis and examination of both the cost on the one hand and profits on the other and also a systematic study of one in relation to other have gained special significance. Establishment of the industry on a sound and stable cost profit base of is indispensable because the industry given enormous revenue to the government to spent on national development. Cost analysis is process of evaluation of an undertaking. It serves as an important tool for efficient decision making and control. The term of cost analysis came into existence due to need and urgency of the business managers to investigate into the inherent causes of frequent variations in cost and profit. The actual earning of a concern may differ from the expected or budgeted earning on account of variation in demand, selling price, production, cost productivity, severely of competition and government legislations etc. Cost analysis examines the relationship of cost and profit to the volume of business to maximize profit. There may be a change in the level of production due to many reasons, such as competition, introduction of a new product, trade depression or boom increased demand for the product, scarce resources, changes in selling prices of products etc. Cost analysis as a technique is used to determine whether a particular project is worthwhile, to choose between alternative projects, or as a guide to the timing of Individual projects. Cost analysis relationship helps the management in discovering the requisite sales strategy to achieve a desired target. This paper tries to highlight about the Overall Cost in Cement Companies and its percentage to Total Cost.