Names ID

Pantho Sarker 20-033

Md. Gulam Kibria 20-075

Md. Touhidul Islam 20-077

Khaleda Easmin 20-087

Sheikh Sajid Hasan 20-181

Group Name:Gradient’m

Application of Managerial Accounting Concepts on Glaxo SmithKline

Bangladesh Ltd.

Now Presenting....

PANTHO SARKER ID: 20-033

Managerial Accounting Financial Accounting

Reports to those inside

the organization

Emphasizes decisions affecting

the future

Managerial Accounting

Emphasizes timeliness

Need not to follow GAAP

Not Mandatory

Reports to Outsiders

Emphasizes financial

consequences of past events

Financial Accounting

Emphasizes precision

Must follow GAAP

Mandatory for

external roeports

Classification of Costs : General

Manufacturing Cost

Direct Materials Direct Labor Manufacturing overhead

Prime Cost Conversion Cost

Non-Manufacturing Cost

Selling Cost Administrative Cost

Costs based on decision making criteria

Differential Cost

Opportunity Cost

Sunk CostBased on Cost Behavior

Variable Cost

Fixed Cost

Classification of Costs

Company OverviewThe name of the company GlaxoSmithKline(GSK) Bangladesh Limited

Parent Company GlaxoSmithKline plc

Company Type Pharmaceutical & Healthcare company

Incorporated in 1949

Registered Office at Chittagong

Product Types Prescription Medicines Vaccines Non Prescribed Medicines Consumer Health Care

Mission

Improve the quality of human life by enabling people to do more, feel better and live longer.

Cost classification of GSK Bangladesh Ltd.

Items Based on Cost Behavior Product Cost

Period Cost Sunk Cost

Employees salary and wages

Fixed Cost

Depreciation Fixed Cost

Raw Materials Variable Cost Direct Material

Distribution cost Fixed / Variable Cost

Factory Workers wages

Variable Cost Direct labor

Cost of goods sold & Net Operating Income of GSK Bangladesh Ltd.

535,597

416,926

354,147

606,617

1,062,530

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

2010

2011

2012

2013

2014

NOI in TK'000

Ye

ar

Net Operating Income

4,476,255

4,516,448

4,814,956

3,386,670

2,389,742

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

2014

2013

2012

2011

2010

COGS in TK'000

Ye

ar

Cost of goods sold

Now Presenting....

MD. GULAM KIBRIA ID: 20-075

Now Presenting....

MD. TOUHIDUL ISLAMID: 20-077

Now Presenting........

KHALDA EASMINID: 20-087

Flexible budget and performance analysis

Planning and Flexible Budget Concept

A planning budget is prepared before the period begins and is valid for only the planned level of activity.

It is suitable for planning but is inappropriate for evaluating

A flexible budget is an estimate of what revenues and costs should have been, given the actual level of activity for the period.

Costs are compared to what the costs should have been for the actual level of activity in Flexible Budget

Performance Report Overview

Standards cost and operating performance measures

Standard Costs and the concept of Management by exception

A standard is a benchmark or “norm” for measuring performance. Actual quantities and actual costs of inputs are compared to these standards.

1.Actual Quantity of Input at Actual Price (AQ×AP)

2.Actual Quantity of Input

at Standard Price (AQ×SP)

3.Standard Quantity Input

at Standard Price (SQ×SP)

(2-1)Price Variance

(3-2)Quantity Variance

Total Variance

Operating Performance Measure

TrusteeFees

Custodian fees

CDBL fees

Audit feesOperating

performance measures

Delivery Cycle Time

Throughput Time

Manufactur-ing Cycle

Efficiency

i) Process Timeii)Inspection Time iii) Move Timeiv) Queue Time.

i) Value Added Time.ii) Non-Value Added Time.

Now Presenting....

SHEIKH SAJID HASAN ID: 20-181

GSK

Pharmaceuticals division

Consumer health care

division

Segmented Income statement Analysis

535,597

416,926 375,670

604,604

1,062,530

2010 2011 2012 2013 2014

'00

0 T

ak

a

Year

Net Operating Income

1,682,194 1,755,543 1,681,4321,990,399 2,046,2961,949,901

2,979,578

3,872,380

4,784,4735,140,929

2010 2011 2012 2013 2014

Revenue Analysis

Pharmaceuticals Consumer health

Key finding form the statements

Tropicals

Vials and drops

Tablet and

Capsules

Oral liquids

Granules

Inhalers

70,858

22,070

-11,804

-35,817

-210,541

2010 2011 2012 2013 2014

'00

0 T

ak

a

Year

Granules

Analysis of the Pharmaceuticals Division

24%

16%

12%

15%

21%

2010 2011 2012 2013 2014

ROI

269,882.80

104,751.52

7,965.28

124,889.00

459,131.36

2010 2011 2012 2013 2014

Residual Income

Performance evaluation of GSK