INSTITUTE OF TECHNOLOGY AND

MANAGEMENT

A
PROJECT REPORT
ON
COST SHEET ANALYSIS
OF
COCA - COLA
SUBMITTED TO: SUBMITTED BY:
SONAM SADHU SHERRIN MARY ALIYAS
ASSIT. PROFESSOR MBA 1
st
YEAR(2
ND
SEM)







2




PREFACE
Cost sheet is a statement prepared to show the various elements of costs, like prime cost, factory
cost of production and total cost. It is prepared at regular intervals, for example, weekly, monthly
quarterly, yearly, etc. In some cases comparative figures of various periods are also shown in the
cost sheet so that assessment can be made about the progress of a business.


Cost sheet is a statement of cost showing cost per unit of any product at every level of
production. It is important to know at what stage of production we are and what price the
particular production stage has. Cost sheet is a statement of cost. In other words, when costing
information is set out in the form of a statement it is called a cost sheet. It is usually adopted
when only one product is produced and all costs are incurred for that product only. Cost sheet
may be prepared for a week, for a month, quarterly or yearly indicating various components of
cost such as prime cost, works cost, cost of production, cost of goods sold, total cost and also
profitability of production.












3





ACKNOWLEDGEMENT

This project report is a result of efforts of a number of persons directly or indirectly associated. I
wish to acknowledge our deep appreciation for the valuable suggestion and guidance rendered to
me by them which has helped me in completing this project.
I am hearty thankful to Mrs Sonam Sadhu, for kindly approving this project work and
extending all the co-ordination for this.

















4

INDEX
















S.NO TOPIC
Page.
No
1 Preface 2
2 Acknowledgement 3
3 Introduction 5
4 Products 6
5 Costing 9
6 Bibliography 11
5

INTRODUCTION


The Coca-Cola Company is an American multinational beverage corporation and
manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups,
which is headquartered in Atlanta, Georgia. The company is best known for its flagship
product Coca-Cola, invented in 1886 by pharmacist John Stith
Pemberton in Columbus, Georgia.
The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler who
incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola
beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or
territories and serves over 1.7 billion servings each day.
The company operates a franchised distribution system dating from 1889 where The
Coca-Cola Company only produces syrup concentrate which is then sold to
various bottlers throughout the world who hold an exclusive territory. The Coca-Cola
Company owns its anchor bottler in North America, Coca-Cola Refreshments.
Its stock is listed on the NYSE and is part of DJIA, S&P 500 index, the Russell 1000
Index and the Russell 1000 Growth Stock Index. Its current chairman and chief executive
is Muhtar Kent.The Coca-Cola Company re-entered India through its wholly owned
subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the
opening up of the Indian economy to foreign investments in 1991.
Since then its operations have grown rapidly through a model that supports bottling
operations, both company owned as well as locally owned and includes over 7,000 Indian
distributors and more than 2.2 million retailers. Today, our brands are the leading brands
in most beverage segments. The Coca-Cola Company's brands in India include Coca-
Cola, Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy
Orange, Minute Maid Nimbu Fresh and the Georgia Gold range of teas and coffees and
Vitingo (a beverage fortified with micro-nutrients).

The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-
entry into India. The company will be investing another USD 5 Billion till the year 2020.
The Coca-Cola system in India directly employs over 25,000 people including those on
contract.
The system has created indirect employment for more than 1,50,000 people in related
industries through its vast procurement, supply and distribution system. We strive to
ensure that our work environment is safe and inclusive and that there are plentiful
opportunities for our people in India and across the world.

The beverage industry is a major driver of economic growth. A National Council of
Applied Economic Research (NCAER) study on the carbonated soft-drink industry
6

indicates that this industry has an output multiplier effect of 2.1. This means that if one
unit of output of beverage is increased, the direct and indirect effect on the economy will
be twice of that. In terms of employment, the NCAER study notes that "an extra
production of 1000 cases generates an extra employment of 410 man days."


As a Company, our products are an integral part of the micro economy particularly in
small towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola
in India is amongst the largest domestic buyers of certain agricultural products.


As an industry which has strong backward and forward linkages, our operations catalysis
growth in demand for products like glass, plastic, refrigeration, transportation, and
Industrial and agricultural products. Our operations also lead to incremental growth for
enterprises engaged in post-production activities like merchandising, marketing and sales.
In addition, we share best practices and technological advancements with our suppliers,
vendors and allied industries which often lead to improvement in the overall standards of
quality across industries.


The Coca-Cola Company has always placed high value on good citizenship. Our basic
proposition entails that our Company's business should refresh the market; enrich the
workplace; protect and preserve the environment; and strengthen the community. We
leverage our unique strengths to actively support and respond to local needs -- be it the
need for education, health, water or nutrition. We have used our distribution network for
disaster relief, our marketing prowess to raise awareness on issues such as PET recycling,
and our presence in communities to improve access to education and potable water.
The Coca-Cola India Foundation is now taking forward in the community at large,
projects and programs of social relevance to carry forward the message of inclusive
growth and development. For more details on activities of the Coca-Cola India
Foundation, please visit the website of the Coca-Cola India
Foundation,www.anandana.org.







7


PRODUCTS


Fanta is a global brand of fruit-flavored carbonated soft drinks created by The Coca-Cola
Company. There are over 100 flavors worldwide. The drink originated in Germany in
1941. In the UK, Fanta is a rival to Tango made by British company Britvic.
Fanta originated as a result of difficulties importing Coca-Cola syrup into Nazi
Germany during World War II due to a trade embargo. To circumvent this, Max Keith,
the head of Coca-Cola Deutschland Coca-Cola GmbH during the Second World War,
decided to create a new product for the German market, using only ingredients available
in Germany at the time, including whey and pomace the "leftovers of leftovers", as
Keith later recalled.
The name was the result of a brief brainstorming session, which started with Keith
exhorting his team to "use their imagination" ,"Fantasie" in German to which one of his
salesmen, Joe Knipp, immediately retorted "Fanta!

Sprite is a colorless, lemon-lime flavored, caffeine-free soft drink, created by the Coca-
Cola Company. It was introduced in the United States in 1961. This was Coke's response
8

to the popularity of 7 Up. It comes in a primarily silver, green, and blue can or a green
transparent bottle with a primarilygreen and blue label.



























9


With the help of this information we prepare a cost sheet of cocacola





Particular

Amt(lakh)
Direct wages

1.2
Prime cost
1.2
Factory overhead


Indirect wages

1.5
Depreciation

1.4
R&d

7
Power and fuel

1.8
Rent

5
other factory related expenses

2
Work cost
19.9
Admin & selling Overhead



16.17
Total cost
36.07
Net profit



12
Sales
48.07


10





PVR = Cost/ sales
=36.07 / 48.07
= 0.75

Note:- to better understanding we can say that PVR is 75%

Breakeven point (rupees) = fixed cost/ PVR
= 1520000/ 0.75
=2026666
Fixed cost include :-
Depreciation 140000
Rent 500000
Power 180000
R&d 700000




Breakeven point (Unites) = fixed cost/ cost
= 1520000/3607000
= 0.42

Margin of safety Ratio = profit/ PVR
= 1200000/0.75
= 1600000


11









Biblography:-

http://icabtutorial.com/cost-sheet-format/
http://en.wikipedia.org/wiki/coca-cola.
http://www.moneycontrol.com/financials/finance/balance-sheet/AF12#AF12
https://www.google.com/finance?fstype=ii&q=NYSE:KO