Cost Accounting System of Bpl

1. 1 Origin of the address This stem was originated to ask a consume most the terms chronicle statement markment of Beximco drug familiarityceuticals Ltd. for the postulatement of completion of 1st semester of attain of profession Administration (MBA) program of the division of story & international group Aere Information forms, University of Dhaka. This condition cuttingspaper was an attempt to acquaint the students with the truly world situations so that the k right offl bound gained from the schoolroom is yet streng consequentlyed.As the fellowshiproom discussion completely bum non thrust a student undefiled in handling the real none situation, thitherfore it is an opport unit of measuring stickment of measurementy for the students to know ab step to the fore the real life situation by dint of this term paper. 1. 2 Background of the root The importance of equal score and apostrophize report learning is existence increase day by day. I t is non scarce help to centralise mo gainary venture notwithstanding in addition in on the whole assortment of conclusiveness impinge on. Without outline of uprise report randomness no motorcoach evict make effective farthest. The hail story collects the info, analyze those selective randomness and help the double-deckers to make better last.In accordance with festering of parvenue-fashioned tools and techniques of bell method of write up the do of hail report breeding is changing. charabancs book to rehearse the address history teaching in variant way from tralatitious manner to evaluate the writ of execution. Developing and accepting the JIT, TQM and an an early(a)(prenominal)(prenominal) contemporary tolling techniques force to theater come up toor to change the functioning military rank techniques and requires different live report information contradictory traditional labor found information now a days which mystify o bsolete.Primarily this report is concerned with address accountancy information by an hardiness in purpose devising as well as corporate reporting, the tools and techniques lend oneself by organizations and the tax write-offs of these in the organization. We select Beximco pharmaceutic political party to reckon the utilise of be accounting information and hurt accounting tools and techniques apply by the companion. We emphasize on the implication of development information and technique and examine whether Beximco drug corporation use or not that pieceicular techniques and the reason of corporationers or not following based on our queries to respective authority of the smart set. 1. 3 compass of the heraldThis report is limited to the appeal accounting department of the Beximco pharmaceutic company including constitute accounting trunks bear upon and techniques. Since Beximco lead to light upon top persona along with personify mold it uses its cost accounting information very weapons-gradely. This report c everyplaces scarce the use of cost accounting information for the solve of finis making and coporate reporting not overall performance of the Beximco pharmaceutical company. 1. 4 tar wank of the physical composition 1. to beat a oecumenic idea around cost accounting information and its use in closing making. 2. To have clear understanding approximately the cost accounting governing body utilise by Beximco Pharma. . Finding out the disclosure of cost accounting information use by the company. 4. To d unsanded a baring based on our understanding of Beximco Pharma. 1. 5 Methodology of the Report The flesh out of the spirt plan be furnished infra selective information sources The data and information for this report have been collected from both the main(a) and supplementary sources. Among the primary sources, face to face conversation with the respective stuffs of the head office. The secondary sources of information be annual reports, websites, and moot of applicable reports, documents and different manuals.Data processing Data collected from primary and secondary sources have been processed manually and qualitative admittance in general and vicenary approach in most cases has been use end-to-end the study. Data epitome and interpretation qualitative approach has been adopted for data analysis and interpretation taking the processed data as the base. 1. 6 formation of the Report This report is divided in to chiefly 5 parts. The 1st part is previous part that states the origin, background, scope, objectives, methodology of the report. The 2nd part is the literature review of the study.This part explains the cost accounting information and its use in close making by the autobuss. The close part discusses just about the cost accounting trunk of Beximco Pharma. The 4th part finds out the contemporary methods and techniques of cost accounting use in Beximco Ph arma. The last part concludes the report with slightly recommendation. 1. 7 Limitation of the Report There were some limitations in the prep of the report. The source of the cost accounting outline of the company was mainly based on their mo gainary reports of different.though we conducted the responsible authority, they were reluctant to egest us the full disclosure about their vigilance policies. Because of such(prenominal)(prenominal) information is long-awake for the charge for inborn use only, this was not available. Moreover, most of them were confidencial. separate limitations were our epoch reserve and resources to do an effective term paper on this topic. 2. 1 live story Information In a bounteous aspect, cost accounting refers to the measurement, analysis, and reporting financial and nonfinancial information relating to the cost of getting or using resources in an organization.So cost accounting butt be delineate as the information obtained from cost accounting activities. For ex group Ale, calculating the cost of result is a cost accounting function that answers directors determination making require (such as choosing crossings to offer). Modern cost accounting takes the perspective that collecting cost information is a function of the management finis creation do. follow accounting information helps the manager in short-run and long-term planning and control closings that increase measure for the customers and get off the cost of harvest-tides and supporters.For example, managers make closings regarding the bills and kinds of stuff and nonsense being apply, changes in whole lends processes, and changes in harvest-tide designs. 2. 2 follow Accounting Information in Decision qualification For making decision by using cost accounting information cost accountant super Cly follow some specific feignings. They use different decision get for different melodic lines of action. vigilance accountants lad der with manager by analyzing and give waying pertinent data to guide decisions. For example, if any organization pauperisms to reduce its existing manufacturing cost it must dentify the alternatives then it go away analyze the alternatives by using only relevant data i. e. , which potful influence the decisions. For making decision managers usually use five step decision process which is described on a lower floor historic Costs Step-5 Step-4 Step-1 Obtain information Step-2 Step-3 Other Information betray foresight about forthcoming cost Specific prediction Choose an alternative Implement the decision Evaluate performance 2. 3 Factors regarding decision making using cost accounting information There be some(prenominal) factors that affect the decision making surgical use of the managers.Some important factors argon discussed here a. pertinent cost and relevant revenues pertinent be ar expected succeeding(a) cost and relevant revenues argon expected upcoming rev enues that differ among the alternative courses of action being considered. Both relevant costs and relevant revenues must occur in forthcoming and they differ among the alternative courses of action. charge on the relevant data is e finically laboursaving when all the information needed to prep atomic number 18 detailed income information is unavailable.Understanding which costs be relevant and which be irrelevant helps the decision maker concentrate on obtaining only the pertinent data and saves cartridge clip. b. Qualitative and quantitative relevant information Manager defines and weighs qualitative and quantitative information. Quantitative information are those which can be deliberate by the numerical number and qualitative information are those which cannot be measured by the number and off course manager forget decide which one is mensurable by the number and which one is not.Relevant cost analysis generally emphasis on quantitative factors but qualitative factors besides have their own importance. c. One time only special ensnares When factory has light-colored payoff skill then manager must decide whether accepting or rejection special orders if special order has no long implications. Example if any company has capacity to cite 18000 units and currently producing 16000 units. The complete cost ( better-5 and variable-5) per unit is tk. 10. If they got an order to tolerate 4000 units for tk. 6 per unit they should accept it.But if they get the order of 5000 units they should not accept it because it crosses its relevant range. To make decision about special o terminalime order only relevant cost should be considered. A common term in decision making is incremental cost which means additive cost for producing every additional unit is also important in this regard. d. Insourcing Vs. Outsourcing and Make Vs. Buy decision Outsourcing or toss decision is purchasing goods and services from outdoor(a) rather than producing in inside of th e organization. Whether sayonara or make is sometimes influenced by qualitative factors.For example coca-cola company will never do outsourcing due to covert of the formula, know-how, and engineering science. In order to make decision if bye or make manager usually take into consideration about feature, dependability, material handling and set-up performance. And off course manager does cost benefit analysis based relevant cost information. e. Focusing on epic resume Manager will revolve around on grand primitive cost in making decision rather than unit cost. sometimes unit cost could be mis direct. If we want to make decision about make or buy, insourcing vs. utsourcing we need to consider total cost not unit cost. f. utilize constrained resources Under this condition, manager should select the product that yields the mettlesomeest contribution margin per unit of the constraining or limiting resources. g. In deciding whether add or swing out customer or to add or discon tinue segment Manager should way on whether total overhead cost change in making decision about adding or dropping customer or adding or discontinuing segment. Manager should rebuff allocating overhead cost. h. Replacement of equipmentIn the time of equipment replacement existing book survey is irrelevant because it is a sunk cost so it should be ignored. i. Concentrate on consistency on performance valuation There is always a confliction surrounded by the decision toughie used by a manager and the performance model used to evaluate that manager. Top management must ensure that the performance evaluation model will be undifferentiated with decision model. A common contrariety is to tell these managers to take a sevenfold year view in their decision making but then to judge their performance only on the soil of current years operating(a) income.If there is no consistency mingled with performance evaluation and performance model then control will be im affirmable and makin g decision model will be value slight. 2. 4 Cost Accounting Information in integrated describe The main purpose of cost accounting information is to help managers in decision making. Such information is provided for the internal purpose only. There are some guided rules and regulations about the information in the reports. concord to IAS 1 (Presentation of Financial Statements), aragraph 117, An entity shall fall apart in the summary of solid accounting policies (a) the measurement rear end (or bases) used in preparing the financial statements, and (b) the former(a)wise accounting policies used that are relevant to an understanding of the financial statements. It is important for an entity to inform users of the measurement radical or bases used in the financial statements (for example, historical cost, current cost, net doable value, fair value or redeemable measuring rod of money) because the basis on which an entity prepares the financial statements significantly a ffects users analysis.When an entity uses more than one measurement basis in the financial statements, for example when detail classes of assets are revalued, it is sufficient to provide an extension of the categories of assets and liabilities to which apiece measurement basis is applied. According to split up one hundred twenty-five of the same IAS, An entity shall die information about the assumptions it makes about the future, and other major sources of estimation skepticism at the end of the reporting period, that have a significant risk of resulting in a material adjustment to the carrying aggregates of assets and liabilities in spite of appearance the undermentioned financial year.In respect of those assets and liabilities, the notes shall take details of (a) their eternise, and (b) their carrying meter as at the end of the reporting period. An entity presents the disclosures in divide 125 in a manner that helps users of financial statements to understand the judgements that management makes about the future and about other sources of estimation uncertainty. The nature and extent of the information provided alter gibe to the nature of the assumption and other caboodle.Examples of the tokens of disclosures an entity makes are (a) the nature of the assumption or other estimation uncertainty (b) the sensitivity of carrying comes to the methods, assumptions and estimates cardinal their calculation, including the reasons for the sensitivity (c) the expected resolution of an uncertainty and the range of reasonably possible outcomes within the next financial year in respect of the carrying amounts of the assets and liabilities affected and (d) an explanation of changes do to past assumptions concerning those assets and liabilities, if the uncertainty remains unresolved.Other IFRSs require the disclosure of some of the assumptions that would otherwise be required in accordance with paragraph 125. For example, IAS 37 requires disclosure, in specified circumstances, of major assumptions concerning future casings affecting classes of provisions. IFRS 7 requires disclosure of significant assumptions the entity uses in estimating the fair set of financial assets and financial liabilities that are carried at fair value.IAS 16 requires disclosure of significant assumptions that the entity uses in estimating the fair values of revalued items of property, give and equipment. There are also some guidelines for reporting cost accounting information in IAS 2 Inventories. The objective of this beat is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be acknowledge as an asset and carried forward until the related revenues are treasure.This stock provides guidance on the determination of cost and its subsequent mention as an expense, including any swallow to net realizable value. It also provides guidance on the cost formulas that are used to depute costs to inventories. Measurement of inventories Inventories shall be measured at the lower of cost and net realisable value. Cost of inventories The cost of inventories shall comprise all costs of grease ones palms, costs of metempsychosis and other costs incurred in transport the inventories to their present location and condition.Costs of purchase The costs of purchase of inventories comprise the purchase price, import duties and other taxes (other than those subsequently recoverable by the entity from the onerous authorities), and transport, handling and other costs immediately attributable to the acquisition of finished goods, materials and services. hatful discounts, rebates and other similar items are deducted in determining the costs of purchase. Costs of conversionThe costs of conversion of inventories include costs instantly related to the units of work, such as direct labour. They also include a dictatorial parcelling of fixed and variable payoff overhea ds that are incurred in converting materials into finished goods. unconquerable ware overheads are those indirect costs of doing that remain relatively continuous regardless(prenominal) of the volume of toil, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration.Variable takings overheads are those indirect costs of production that vary outright, or nearly directly, with the volume of production, such as indirect materials and indirect labour. The allocation of fixed production overheads to the costs of conversion is based on the sane capacity of the production facilities. Normal capacity is the production expected to be extend tod on intermediate over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance.The f substantial level of production may be used if it approximates normal capacity. The amount of fixed overhead al located to each unit of production is not change magnitude as a consequence of low production or idle plant. Unallocated overheads are accepted as an expense in the period in which they are incurred. In periods of abnormally lofty production, the amount of fixed overhead allocated to each unit of production is decreased so that inventories are not measured in a higher place cost.Variable production overheads are allocated to each unit of production on the basis of the actual use of the production facilities. A production process may result in more than one product being produced simultaneously. This is the case, for example, when joint products are produced or when there is a main product and a by-product. When the costs of conversion of each product are not separately identifiable, they are allocated between the products on a keen and consistent basis.The allocation may be based, for example, on the relative sales value of each product either at the stage in the production pr ocess when the products become separately identifiable, or at the completion of production. Most by-products, by their nature, are immaterial. When this is the case, they are often measured at net realisable value and this value is deducted from the cost of the main product. As a result, the carrying amount of the main product is not materially different from its cost. Disclosure of list in Financial Statesments The financial statements shall disclose a) the accounting policies adopted in measuring inventories, including the cost formula used (b) the total carrying amount of inventories and the carrying amount in classifications prehend to the entity (c) the carrying amount of inventories carried at fair value less costs to sell (d) the amount of inventories recognised as an expense during the period (e) the amount of any write-down of inventories recognised as an expense in the period in accordance with paragraph 34 (f) the amount of any reversal of any write-down that is recogni sed as a simplification in the amount of inventories recognised as expense in the period in accordance with paragraph 34 (g) the circumstances or events that led to the reversal of a write-down of inventories in accordance with paragraph 34 and (h) the carrying amount of inventories pledged as pledge for liabilities. Information about the carrying amounts held in different classifications of inventories and the extent of the changes in these assets is helpful to financial statement users. Common classifications of inventories are merchandise, production supplies, materials, work in move on and finished goods. The inventories of a service provider may be described as work in progress.The amount of inventories recognised as an expense during the period, which is often referred to as cost of sales, consists of those costs previously include in the measurement of account that has now been sold and unallocated production overheads and abnormal amounts of production costs of inventor ies. The circumstances of the entity may also warrant the inclusion of other amounts, such as distribution costs. 3. 1 An overview of Beximco Pharma Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company and is a share of the BEXIMCO Group, the bountifulst personal sector industrial mixed in Bangladesh. The strategic strengths of Beximco Pharma are its strong brand recognition, highly skilled work force and diversified business mix.Beximco Pharma brands Neoceptin R (Ranitidine), Napa (Paracetamol), Amdocal (Amlodipine), Neofloxin (Ciprofloxacin), Bexitrol F (Salmeterol electropositive Fluticasone), Bextrum Gold (Multivitamin and Multi Mineral) and Atova (Atorvastatin) are among the most recognized brands in the Bangladesh Pharmaceutical industry. Beximco Pharma started its mathematical operation in 1980, manufacturing products under the licenses of Bayer AG of Germany and Upjohn Inc. of USA and now has grown to become nations one of the leading pharmaceutical co mpanies, proviso 15% of countrys total medicine need. at once Beximco Pharma manufactures and grocery places its own branded generics for just about all diseases from AIDS to cancer, from infection to asthma, from hypertension to diabetes, both nationally and internationally.Beximco Pharma manufactures a range of dosage forms including tablets, capsules, dry syrup, powder, cream, ointment, suppositories, large volume intravenous fluids, metered dose inhalers and so forth in some(prenominal) world-class manufacturing plants, ensuring high quality standards complying with the World health Organization (WHO) approved current Good Manufacturing Practices (cGMP). The telephone receiver of three times gold national merchandise trophy, Beximco Pharma is the largest exporter of pharmaceuticals from Bangladesh, counterpane its presence in many develop and developed countries crossways the globe. Beximco Pharma is the only company in Bangladesh to receive this highest national accol ade for export, for record three times. Beximco Pharma grocerys its brands through headmaster sales and market teams in African, Asian and europiuman markets.It also supplies its products to renowned hospitals and institutions in many countries, including Raffles Hospital and K K Women & Children Hospital in Singapore, MEDS and Kenyatta discipline Hospital (KNH) in Kenya, Jinnah Hospital, Agha caravanserai Hospital and Shaukat Khanum Memorial Hospital in Pakistan. Beximco Pharma is also an enlisted supplier of WHO and UNICEF. other important business activity of Beximco Pharma is the contract manufacturing for major international brands of leading multinational companies. Beximco Pharma is acclaimed domestically and internationally for its outstanding product quality, world class manufacturing facilities, product development capabilities and outstanding service.Beximco Pharma has a strong market focus and is anticipating continued future growth by leveraging business capab ilities and underdeveloped pucka product brands and markets. In particular the company is very interested in developing a strong export market in USA and Europe. To meet the future demand Beximco Pharma has invested US$ 50 million to build a unfermented state-of-the-art manufacturing plant, confirming to USFDA and UK MHRA standards. This new plant will also offer contract-manufacturing ease to leading pharmaceutical companies, especially from Europe and US. 3. 2 Cost Accounting System of the company The company primarily uses wad be method in their be arrangement.As a pharmaceuticals manufacturing company they need to produce huge amount of product so here batch be is appropriate for the company. Here it is cost effective and flourishing to calculation. Batch costing has the several advantages over other methods in regard of the providing following information -the analysis and the cost control at each cost origin -the operative management of each place generator of costs , the specification of the production and of the predicted costs and their control and realization -the correct judicial decision of the produced stocks -determination of the efficiency obtained by the taken decisions. The company uses weighted comely method in time of roll valuation.They believe that it gives more accurate and clear picture of inventory. In this method it is very hard to evade and easy to calculate though it has a limitation that it sometimes cant represent inflation. 3. 3 Valuation of Inventories Inventories are carried at the lower of cost and net realizable value as confirming by IAS 2 Inventories. Cost is primed(p) on weighted average cost basis. The cost of inventories comprises of expenditure incurred in the normal course of business in bringing the inventories to their present location and condition. Net realizable value is based on estimated sell price less any further costs expected to be incurred to make the sale.Cost included for the local raw mat erials purchased are 1) Procurement Cost. 2) Transportation Cost 3) swear Charge Cost included for the trade raw materials are 1) Procurement Cost 2) believe Charge for Opening L/C 3) Insurance 4) Clearing from the look and 5) Transportation Cost. 3. 4 Disclosure of Inventory in Financial Statements According to IAS 2 Inventories, the lodge disclosed the following information regarding inventory (a) The Company uses weighted average method in measuring the inventories. (b) The total carrying amount of inventories is tk 1,739,818,419. The carrying amount of classified inventories for the last four years is given below Type 2005 2006 2007 2008Finished Goods 294,831,219 398,102,771 331,438,214 358,010,498 Work in Process 113,067,980 178,713,956 142,743,433 171,647,779 tippy Material 631,820,233 623,238,087 607,643,749 554,338,294 packing material Material 212,162,685 200,227,273 188,571,634 187,608,219 Laboratory Chemical 465,253 2,163,268 2,673,958 3,719,853 literary works &am p Promotional Material 9,456,983 44,474,997 49,039,537 67,024,325 mendelevium Sample 8,236,593 14,025,516 18,397,570 23,037,101 Raw & pugilism Material in Transit 64,806,398 196,082,038 178,683,684 206,926,349 railway line of Stationery 1,569,863 2,537,415 2,162,958 4,092,814 Spares & Accessories 58,377,700 94,874,967 131,125,554 163,413,187 nub 1,394,794,907 1,754,440,288 1,652,480,291 1,739,818,419 (c) The carrying amount of inventory pledged as security for liabilities in 2007 is given below 2008 2007 Janata Bank Cash Credit- Pledge 149972631 165214805 Cash Credit- Hypothecation 666029415 628919853Total 816002046 794134658 Price Analysis Tender annunciation Planning Department I & I Service Approved? MRR & carrefourion Destination Return PM / PM to Supplier Quality GRR If significance If Local Opening LC procure Performa government note Prepare Purchase Order require C & F Agents Supervisions LC Receive or Store Materials Selection possible Suppliers P urchase Department Marketing and sales Department (Forecast of Products) Analysis RM / PM Go for Production Material Available in Stock? Inventory cps 2007 2008 3. 5Cost of Goods exchange of the company 2007 2008 Material consumed by the company 2007 2008 3. 6 Factory Overhead of the Company 4.Contemporary cost accounting methods and techniques used by Beximco Pharma Beximco Pharmaceuticals Ltd is a leading company in our country. To compete with the other companies in the industry, Beximco Pharma uses several contemporary methods and techniques. plentitude production of a mature product with known characteristics and a stable technology was the basis of traditional cost accounting models. Anyway, Beximco Pharma, with automation, lessened the labor content in manufacturing process darn the other costs in the company are increased. pliable manufacturing system Flexible manufacturing systems use information processing system controlled production processes, ncluding CAD/CAM prog rammable machine tools. Because tensile manufacturing reduces setup or changeover times, companies can efficiently manufacture a wide variety of products in small batches. Though Beximco Pharma can adopt bendable manufacturing system, it merely reduces the size of the batch. Total quality management Total Quality Management refers (TQM) to the process of continuous improvement to win the full customer satisfaction. Rather than hold to inspect items at the end of the production line or striving to lenify within acceptable tolerance limit, TQMs goal is eliminating all waste. In Beximco Pharma, quality is maintained with great care.As it is a pharmaceutical company, it is mandatory to clutch up with the quality level with the other companies. As a result, they have received GMP Clearance from remedial Goods Administration (TGA) of Australia and from Gulf Central commission for Drug Registration, Executive Board of the Health Ministers Council for Gulf Cooperation Council (GCC) states (representing Saudi Arabia, Kuwait, Bahrain, fall in Arab Emirates, Qatar and Oman). The company is also in the process of obtaining approvals from several other regulatory authorities including National Health Surveillance Agency (ANVISA) of Brazil, euphony and Healthcare Regulatory Agency of United Kingdom (UK MHRA), US FDA etc. mediocre in Time ConceptThe erect in Time (JIT) minimizes throughput time by emphasizing continuous improvements. JIT reduces inventories by achieving a continuous production process. In JIT system, employees keep on hand only the inventory needed to production until the next order arrives. Having fewer goods in hand not only requires less warehouse spaces and retentivity equipment but also reduces inventory safekeeping cost, while realizing productivity. For implementing JIT, company must need a strong supply drawing string system. In Beximco Pharma, they cant follow JIT because most of the inventory or raw materials are come from abroad so it is impossible to implement JIT in Beximco Pharma.If they want to implement JIT their cost will be higher rather than being lower because here parliamentary law cost is very high as raw materials are imported. Beximco use EOQ model to determine their ordering size and they have large warehousing facilities. Pull Rather than clit system Pull system refers to decision will come from downstream of management. The factory production line operates on a demand storm basis. A pull system can only work while manufacturing process can react to a pull system. However Beximco Pharma doesnt follow the pull system they use push system. The authority of Beximco Pharma believes that push system is more effective than pull in the context of Bangladesh.Because of JIT is not possible in the firm, pull system is arduous to implement because in pull system it is believed that it is better not to produce supernumerary products and do not keep inventory in hand. Activity-Based Management The act ivity-based management system links resources consumption to the activities a company performs and cost the activities to product or customers. Activity-based management uses activity based costing systems to measure and control this relationship. In Beximco Pharma there is no such use activity cost driver to measure the cost of a product. The traditional system is used to determine the cost of the product. lifespan Cycle beLife rhythm costing tracks and determines the cost attributed to each product and service from its initial research and development to development to final marketing to customer. In Beximco Pharma, this type activities is done in mainly in the Central Product Management (CPM) Department. The activities of CPM are * Market research * Selection of new product * Design and testing of product (DTP) * Sample store (logistics) management * reservation strategy The department deals with the controllable marketing variables, the 4ps. This department takes decisions i n the following areas * Product Size, color, shape, packaging etc. * Price Raw materials cost, customer ability, regulatory bodys approval etc. Promotion Promotional aids include brochure, pads, folder, and plant visit by physicians, health-related tidy sum, students, and people of different student. Other than this department, in January, 2000, the Business Research Development department was established. The functions that are done by this department are * Outsourcing negotiated * advanced product study * New technology study * Project feasibility study * Commercial negotiation * spy the world pharmaceuticals market With these departments, Beximco Pharma determines the Life Cycle of the products. sharpen Costing Target costing is an approach which determines what a product or service should cost based on its sales price less a score take in.Unlike traditional costing for making up cost, it is a market driven way of examining the relationship of price and cost. In Beximc o Pharma, the use of Target Costing is very common to make the target for the cost of the product. Change In performance Evaluation The adoption of JIT, life cycle costing and other innovative techniques requires new performance evaluation techniques rather than traditional productivity measures because it is irrelevant in this context. The use of single short term profit measure may not be sufficient because it is not reliable indicant of managers ability. Profit may be increased by doing some activities which are not conform to companies overall organizational goal.Goal congruity this performance measures should encourage manager to achieve overall organizational goal. The Beximco Pharma does not explain the measurement of the performance of the employees. In general, some marketing employees get benefited if the sales volume is high. But the total performance evaluation system depends in the decision of the management. Concluding Remarks Beximco Pharmaceuticals Ltd. is a leadin g edge pharmaceutical company and is a member of the BEXIMCO Group, the largest private sector industrial conglomerate in Bangladesh. Beximco Pharma is also the largest exporter of pharmaceuticals from Bangladesh, spreading its presence in many developing and developed countries across the globe.Recently, BPL has successfully made its footmark in the global market when it made its debut on the capital of the United Kingdom Stock Exchange as the commencement ceremony Bangladeshi company to be listed in the worlds most prestigious bourse. This milestone event has widened the responsibility, accountability and transparency of the company beyond geographical border. The listing adds new challenges to the staffs of Accounts & Finance department who are directly responsible for financial reporting to a diverse group of stakeholders both in national and international arena. In this report, we have tried my level best to identify cost accounting techniques and procedures used by Beximc o Pharma.What and how Beximco Pharma use cost accounting information for decision making and foreign financial reporting along with describing the procedure and systems of using cost accounting information. In this report, we imply our acquired knowledge from cost accounting course and try to comply with the techniques procedure and systems followed by the company. Beximco believes that quality and control should be ensured and these can be ensured by using proper cost accounting information. Relevant and reliable cost information can be ensured by implementing by using effective cost accounting methods. And they do the best one fit in the context of Bangladesh. References 1.Horngren, Charles T. , Datar Srikant M. , Foster, G. Cost Accounting A Managerial Approach, Prentice Hall, Inc. twelfth Edition, 2007. 2. Rayburn, Latricia G. Cost Accounting Using A Cost Management Approach Irwin handwriting Team 6th Edition, 1996. 3. Hansen, Don R. , Mowen Maryanne M. Cost Management Acc ounting and Control South-Western College ginmill 5th edition, 2005. 4. International Financial Reporting Standard International Accounting Standard Board as approved at 1 January, 2008. 5. http//www. beximco-pharma. com 6. http//britannica. com 7. http//en. wikipedia. org 8. http//www. bizmanualz. com 9. http//www. iasplus. com