Nestle Cost Analysis

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Nestle Cost Analysis

By | Feb. 2013
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NESTLE PVT LIMITED

SUMITTED TO:
SIR SHAUKAT ALI RAZA

GROUP MEMBERS:
SIDRA HAMEED SANA SHABIR RIZWANA MASOOD NEELAM NAHEED SEHRISH NAEEM F07B001 F07B020 F07B024 F07B028 F07B032

INSTITUTE OF BUSINESS & INFORMATION TECHNOLOGY

INSTITUTE OF BUSINESS & INFORMATION TECHNOLOGY

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NESTLE PVT LIMITED

ABOUT NESTLE
Nestlé is a multinational packaged foods company founded and headquartered in Vevey, Switzerland. it is the world’s foremost Nutrition, Health & Wellness company, committed serving consumers all over the world. Their focus on responsible nutrition and promoting health and wellness is a core value, emphasizing responsibility and sustainability. Nestlé products are sold in almost every country in the world.

MISSION STATEMENT
“Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life.”

COST ACCOUNTING INFORMATION SYSTEM OF NESTLE

INPUT MEASUREMENT BASIS
STANDARD COSTING
Nestle’ is using STANDARD COSTING as a base for input measurement. Standard costs are usually associated with a company's costs of direct material, direct labor, and manufacturing overhead. Rather than assigning the actual costs of direct material, direct labor, and manufacturing overhead to a product, nestle’ like many manufacturers assigns the expected or standard cost. This means that its inventories and cost of goods sold will begin with amounts reflecting the standard costs, not the actual costs, of a product. Nestle’, of course, still has to pay the actual costs. As a result there are almost always differences between the actual costs and the standard costs, and those differences are known as variances.

INSTITUTE OF BUSINESS & INFORMATION TECHNOLOGY

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NESTLE PVT LIMITED

REASON FOR USING STANDARD COSTING
Nestle...

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