Cost Accounting System of Bpl

1. 1 Origin of the Report This idea was originated to make a study well-nigh the salute story system of Beximco pharmaceutic companyceuticals Ltd. for the requirement of completion of initiative semester of Master of Business Administration (MBA) architectural plan of the Department of news report & Information Systems, University of Dhaka. This term paper was an attempt to acquaint the students with the real world situations so that the k straightawayledge gained from the classroom is further strengthened.As the classroom discussion al one(a) dissolve non make a student meliorate in treatment the real business situation, therefore it is an opport building blocky for the students to know round the real live drawss situation through this term paper. 1. 2 Background of the Report The importance of monetary cling to score and price bill reading is being increased day by day. It is non however help to squeeze personify only when too in all kind of finale do. Wit hout compend of personify bill training no double-decker can make effective ending. The personify history collects the info, analyze those selective entropy and help the buss to make ameliorate decision.In accordance with development of new tools and techniques of apostrophize history the determination of hail news report tuition is changing. Managers need to use the court accounting entropy in contrary focal point from handed-down manner to evaluate the motion. Developing and accepting the JIT, TQM and separate modern be techniques force to manager to change the performance evaluation techniques and requires different cost accounting discipline unlike traditional labor movement based information now a days which become obsolete.Primarily this composition is concerned with cost accounting information by an organization in decision making as well as corporate describe, the tools and techniques employ by organizations and the implications of these i n the organization. We select Beximco drug company to examine the use of cost accounting information and cost accounting tools and techniques apply by the compe precise. We empha surface on the implication of exploitation information and technique and examine whether Beximco pharma use or not that particular techniques and the reason of fol brokening or not following based on our queries to respective authority of the company. 1. 3 Scope of the ReportThis report is limited to the cost accounting plane section of the Beximco Pharma including cost accounting systems procedure and techniques. Since Beximco compliments to secure top quality along with cost throw it uses its cost accounting information very strongly. This report covers only the use of cost accounting information for the purpose of decision making and coporate reporting not overall performance of the Beximco Pharma. 1. 4 Objective of the Report 1. to have a general idea close cost accounting information and its us e in decision making. 2. To have clear understanding more or little the cost accounting system use by Beximco Pharma. . Finding out the manifestation of cost accounting information employ by the company. 4. To draw a conclusion based on our understanding of Beximco Pharma. 1. 5 Methodology of the Report The details of the work plan argon furnished below Data sources The information and information for this report have been collected from both the primary and secondary sources. Among the primary sources, reckon to face conversation with the respective stuffs of the head office. The secondary sources of information are annual reports, websites, and study of pertinent reports, documents and different manuals.Data processing Data collected from primary and secondary sources have been processed manually and qualitative appeal in general and quantitative approach in roughlywhat cases has been used throughout the study. Data analysis and interpretation Qualitative approach has b een adopted for data analysis and interpretation taking the processed data as the base. 1. 6 Organization of the Report This report is divided in to mainly 5 parts. The 1st part is introductory part that states the origin, background, scope, objectives, methodology of the report. The 2nd part is the literature review of the study.This part apologises the cost accounting information and its use in decision making by the managers. The next part discusses about the cost accounting system of Beximco Pharma. The 4th part finds out the contemporary methods and techniques of cost accounting used in Beximco Pharma. The last part concludes the report with nearly recommendation. 1. 7 Limitation of the Report There were some limitations in the preparation of the report. The source of the cost accounting system of the company was mainly based on their monetary reports of different.Though we conducted the responsible authority, they were reluctant to give us the full disclosure about their w ay policies. Because of much(prenominal) information is prepared for the charge for internal use only, this was not available. Moreover, most of them were confidencial. new(prenominal) limitations were our time coldness and resources to prepare an effective term paper on this topic. 2. 1 hail Accounting Information In a broad aspect, cost accounting refers to the quantity, analysis, and reporting pecuniary and nonfinancial information relating to the cost of acquiring or using resources in an organization.So cost accounting can be defined as the information obtained from cost accounting activities. For deterrent example, calculating the cost of ware is a cost accounting function that answers managers decision making needs ( such as choosing growths to offer). Modern cost accounting takes the perspective that stack away cost information is a function of the management decision being do. represent accounting information helps the manager in short-run and long-run planning and control decisions that increase value for the customers and overthrow the cost of reapings and services.For example, managers make decisions regarding the sum of moneys and kinds of material being used, changes in show processes, and changes in product designs. 2. 2 Cost Accounting Information in Decision Making For making decision by using cost accounting information cost accountant usually follow some specific models. They use different decision model for different draws of action. Management accountants work with manager by analyzing and presenting relevant data to guide decisions. For example, if any organization wants to reduce its existing manufacturing cost it must dentify the utility(a)s then it will analyze the alternatives by using only relevant data i. e. , which can influence the decisions. For making decision managers usually use quintuplet step decision process which is described below Historical Costs Step-5 Step-4 Step-1 Obtain information Step-2 Step-3 Ot her Information Make prediction about future cost Specific prediction Choose an alternative Implement the decision Evaluate performance 2. 3 Factors regarding decision making using cost accounting information There are several factors that affect the decision making procedure of the managers.Some alpha factors are discussed here a. Relevant costs and relevant revenues Relevant costs are expected future costs and relevant revenues are expected future revenues that differ among the alternative courses of action being considered. Both relevant costs and relevant revenues must occur in future and they differ among the alternative courses of action. counseling on the relevant data is e specificly helpful when all the information necessary to prepare detailed income information is unavailable.Understanding which costs are relevant and which are irrelevant helps the decision maker concentrate on obtaining only the pertinent data and saves time. b. Qualitative and quantitative relevant i nformation Manager defines and weighs qualitative and quantitative information. numeric information are those which can be measured by the numerical number and qualitative information are those which cannot be measured by the number and off course manager will square up which one is measurable by the number and which one is not.Relevant cost analysis generally emphasis on quantitative factors but qualitative factors similarly have their own importance. c. One time only special dictates When factory has idle exertion cleverness then manager must decide whether accepting or rejection special orders if special order has no long implications. Example if any company has capacity to recruit 18000 social units and actually producing 16000 units. The tot cost ( repair-5 and variable-5) per unit is tk. 10. If they got an order to deliver 4000 units for tk. 6 per unit they should accept it.But if they formulate the order of 5000 units they should not accept it because it crosses it s relevant range. To make decision about special onetime order only relevant cost should be considered. A common term in decision making is incremental cost which means additional cost for producing every additional unit is too important in this regard. d. Insourcing Vs. Outsourcing and Make Vs. Buy decision Outsourcing or Bye decision is purchasing goods and services from outdoor(a) rather than producing in inside of the organization. Whether bye or make is sometimes influenced by qualitative factors.For example coca-cola company will never do outsourcing due to secrecy of the formula, know-how, and engineering science. In order to make decision if bye or make manager usually take into consideration about quality, dependability, material handling and set-up body process. And off course manager does cost benefit analysis based relevant cost information. e. Focusing on grand total Manager will focus on grand total cost in making decision rather than unit cost. Sometimes unit cost could be mis starring(p). If we want to make decision about make or buy, insourcing vs. utsourcing we need to consider total cost not unit cost. f. Using constrained resources Under this condition, manager should select the product that yields the highest contribution margin per unit of the constraining or limiting resources. g. In deciding whether add or drop customer or to add or discontinue segment Manager should focus on whether total overhead cost change in making decision about adding or dropping customer or adding or discontinuing segment. Manager should ignore allocating overhead cost. h. Replacement of equipmentIn the time of equipment replacement existing book value is irrelevant because it is a sunk cost so it should be ignored. i. Concentrate on consistency on performance evaluation There is always a confliction between the decision model used by a manager and the performance model used to evaluate that manager. Top management must undertake that the performance evalua tion model will be consistent with decision model. A common horror is to tell these managers to take a multiple year view in their decision making but then to judge their performance only on the founding of current years run income.If there is no consistency between performance evaluation and performance model then control will be impossible and making decision model will be valueless. 2. 4 Cost Accounting Information in Corporate inform 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. gibe to IAS 1 (Presentation of Financial Statements), aragraph 117, An entity shall disclose in the succinct of significant accounting policies (a) the measurement basis (or bases) used in preparing the financial statements, and (b) the some otherwise accounting policies used that are relevant to an understanding o f the financial statements. It is important for an entity to inform users of the measurement basis or bases used in the financial statements (for example, historical cost, current cost, net realizable value, fair value or redeemable tote up) because the basis on which an entity prepares the financial statements significantly affects users analysis.When an entity uses more than one measurement basis in the financial statements, for example when particular classes of assets are revalued, it is sufficient to provide an indication of the categories of assets and liabilities to which each measurement basis is applied. match to paragraph 125 of the same IAS, An entity shall disclose information about the assumptions it makes about the future, and other major sources of friendship uncertainty at the end of the reporting period, that have a significant risk of resulting in a material adjustment to the carrying beats of assets and liabilities within the next financial year.In respect o f those assets and liabilities, the notes shall include details of (a) their nature, and (b) their carrying amount as at the end of the reporting period. An entity presents the disclosures in paragraph 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 vary according to the nature of the assumption and other dower.Examples of the types of disclosures an entity makes are (a) the nature of the assumption or other estimation uncertainty (b) the sensitivity of carrying amounts to the methods, assumptions and estimates underlying 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 chan ges made 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 events affecting classes of provisions. IFRS 7 requires disclosure of significant assumptions the entity uses in estimating the fair values 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, plant and equipment. There are also some guidelines for reporting cost accounting information in IAS 2 Inventories. The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be value as an asset a nd carried forward until the related revenues are recognise.This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any demoralise to net realizable value. It also provides guidance on the cost formulas that are used to assign 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 buy, costs of conversion and other costs incurred in bringing 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 taxing authorities), and transport, handling and other costs outright attributable to the acquisition of finished goods, materials and services. Trade discounts, rebates and other similar items are deducted in determining the costs of purchase. Costs of conversionThe costs of conversion of inventories include costs transferly related to the units of employment, such as direct labour. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods. Fixed production overheads are those indirect costs of production that remain relatively unvaried regardless of the volume of production, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration.Variable production overheads are those indirect costs of production that vary like a shot, 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 normal capacity of the production facilities. Normal capacity is the production expected to be achieved on come over a num ber of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance.The actual level of production may be used if it approximates normal capacity. The amount of fixed overhead allocated to each unit of production is not increased as a consequence of low production or idle plant. Unallocated overheads are recognised as an expense in the period in which they are incurred. In periods of abnormally high production, the amount of fixed overhead allocated to each unit of production is decreased so that inventories are not measured above 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 separ ately identifiable, they are allocated between the products on a rational 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 process 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 Inventory 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 appropriate to the entity (c) the carrying amount of inventories carried at fair value less costs to sell (d) the amount of inventorie s 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 recognised as a reduction 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 security measures 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 progress 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 inventory that has now been sold and unallocated production overheads and abnormal amounts of production costs of inventories. 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 member of the BEXIMCO Group, the largest private sector industrial conglomerate in Bangladesh. The strategic strengths of Beximco Pharma are its strong brand recognition, highly skilled work force and change business mix.Beximco Pharma brands Neoceptin R (Ranitidine), Napa (Paracetamol), Amdocal (Amlodipine), Neofloxin (Ciprofloxacin), Bexitrol F (Salmeterol Plus Fluticasone), Bextrum Gold (Multivitamin and Multi Mineral) and Atova (Atorvastatin) are among the most know brands in the Bangladesh Pharmaceutical industry. Beximco Pharma started its 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 companies, supplying 15% of countrys total medicine need. at once Beximco Pharma manufactures and markets its own branded generics for almost all diseases from AIDS to cancer, from infection to asthma, from hypertension to diabetes, both across the nation and inter field of studyly.Beximco Pharma manufactures a range of dosage forms including tablets, capsules, dry syrup, powder, cream, ointment, suppositories, large volume intravenous fluids, metered dose inhalers etc. in several world-class manufacturing plants, ensuring high quality standards complying with the World Health Organization (WHO) approved current Good Manufacturing Practices (cGMP). The recipient of three times gold national export trophy, Beximco Pharma is the largest exporter of pharmaceuticals from Bangladesh, spreadin g its presence in many developing and developed countries across the globe. Beximco Pharma is the only company in Bangladesh to receive this highest national accolade for export, for record three times. Beximco Pharma markets its brands through professional sales and marketing teams in African, Asian and European markets.It also supplies its products to renowned hospitals and institutions in many countries, including Raffles infirmary and K K Women & Children Hospital in Singapore, MEDS and Kenyatta National Hospital (KNH) in Kenya, Jinnah Hospital, Agha Khan Hospital and Shaukat Khanum Memorial Hospital in Pakistan. Beximco Pharma is also an enlisted supplier of WHO and UNICEF. Another important business activity of Beximco Pharma is the contract manufacturing for major world(prenominal) brands of leading multinational companies. Beximco Pharma is acclaimed domestically and outside(a)ly 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 maturement by leveraging business capabilities and developing superior product brands and markets. In particular the company is very interested in developing a strong export market in USA and Europe. To collect the future demand Beximco Pharma has invested US$ 50 million to build a new state-of-the-art manufacturing plant, confirming to USFDA and UK MHRA standards. This new plant will also offer contract-manufacturing facility to leading pharmaceutical companies, particularly from Europe and US. 3. 2 Cost Accounting System of the company The company primarily uses batch costing method in their costing system.As a pharmaceuticals manufacturing company they need to produce huge amount of product so here batch costing is appropriate for the company. Here it is cost effective and easy to calculation. chaw costing has the several advantages over other methods in regard of the providing following information -the analysis and the cost control at each cost author -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 assessment of the produced stocks -determination of the efficiency obtained by the taken decisions. The company uses weighted average method in time of inventory valuation.They believe that it gives more faultless and clear picture of inventory. In this method it is very hard to manipulate 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 prescribed by IAS 2 Inventories. Cost is typesetd 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 selling price less any further costs expected to be incurred to make the sale.Cost include for the local raw materials purchased are 1) Procurement Cost. 2) Transportation Cost 3) Bank Charge Cost included for the imported raw materials are 1) Procurement Cost 2) Bank Charge for Opening L/C 3) Insurance 4) Clearing from the Port and 5) Transportation Cost. 3. 4 Disclosure of Inventory in Financial Statements According to IAS 2 Inventories, the Company 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 accustomed 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 Raw clobber 631,820,233 623,238,087 607,643,749 554,338,29 4 Packing square 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 Literature & Promotional Material 9,456,983 44,474,997 49,039,537 67,024,325 Physician Sample 8,236,593 14,025,516 18,397,570 23,037,101 Raw & Packing Material in Transit 64,806,398 196,082,038 178,683,684 206,926,349 Stock 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 Total 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 impairment analytic thinking Tender Announcement Planning Department I & I Service Approved? MRR & takings finish Return PM / PM to Supplier Quality GRR If Import If Local Opening LC Receive Performa visor Prepare Purchase Order Contract C & F Agents Supervisions LC Receive or Store Materials endurance Potential Suppliers Purchase Department Marketing and Sales Department (Forecast of Products) Analysis RM / PM Go for Production Material Available in Stock? Inventory Cycle 2007 2008 3. 5Cost of Goods Sold 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. Mass 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 while the other costs in the company are increased. Flexible manufacturing system Flexible manufacturing systems us e computer controlled production processes, ncluding CAD/CAM programmable machine tools. Because flexible manufacturing reduces setup or changeover times, companies can efficiently manufacture a wide variety of products in small batches. Though Beximco Pharma can adopt flexible manufacturing system, it notwithstanding reduces the size of the batch. Total quality management Total Quality Management refers (TQM) to the process of continuous onward motion to achieve the full customer satisfaction. Rather than waiting to inspect items at the end of the production line or striving to stay 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 keep up with the quality level with the other companies. As a result, they have received GMP Clearance from Therapeutic Goods Administration (TGA) of Australia and from Gulf rudimentary Committee for Drug Registration, Ex ecutive Board of the Health Ministers Council for Gulf Cooperation Council (GCC) states (representing Saudi Arabia, Kuwait, Bahrain, United Arab Emirates, Qatar and Oman). The company is also in the process of obtaining approvals from several other regulatory authorities including National Health Surveillance position (ANVISA) of Brazil, Medicine and Healthcare Regulatory Agency of United Kingdom (UK MHRA), US FDA etc. Just in Time ConceptThe Just 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 store spaces and storage equipment but also reduces inventory holding cost, while realizing productivity. For go throughing JIT, company must need a strong supply chain system. In Beximco Pharma, they cant follow JIT because most of t he 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 ordering cost is very high as raw materials are imported. Beximco use EOQ model to determine their ordering size and they have large storage facilities. Pull Rather than get system Pull system refers to decision will come from downstream of management. The factory production line operates on a demand slug basis. A pull system can only work while manufacturing process can defend 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 difficult to implement because in pull system it is believed that it is better not to produce unnecessary products and do not keep inventory in han d. Activity-Based Management The activity-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. Life Cycle CostingLife cycle 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 through with(p) in mainly in the Central Product Management (CPM) Department. The activities of CPM are * Market research * plectron of new product * Design and testing of product (DTP) * Sample store (logistics) management * Making system The department deals with the controllable marketing variables, the 4ps. This department takes decisions in 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 people, 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 * New product study * New technology study * Project feasibility study * Commercial negotiation * Observing the world pharmaceuticals market With these departments, Beximco Pharma determines the Life Cycle of the products. Target Costing Target costing is an approach which determines what a product or service should cost based on its sales price less a target profit.Unlike traditional costing for making up cost, it is a market driven way of examining the relationship of price and cost. In Beximco 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 indicator of managers ability. salary may be increased by doing some activities which are not conform to companies overall organizational goal.Goal Congruence 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 P harmaceuticals Ltd. is a leading 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 track in the global market when it made its debut on the London Stock Exchange as the first Bangladeshi company to be listed in the worlds most prestigious bourse. This milestone event has widened the responsibility, obligation 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 Beximco Pharma.What and how Beximco Pharma use cost accounting information for decision making and external 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 Book Team sixth Edition, 1996. 3. Hansen, Don R. , Mowen Maryanne M. Cost Management Accounting and Control Sout h-Western College Pub 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