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COST CENTRE CODES AND DEFINITIONS Ideally_ a cost centre is

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					COST CENTRE CODES AND DEFINITIONS:

Ideally, a cost centre is an area of responsibility in a Mill or an enterprise which
corresponds with the managerial structure, and which in the case of production cost
centers, allows production to be easily measures.

All revenue expenditure in a Mill arises through a head of department or cost centre
initiating or approving the amount to be spent. By coding all expenditure according to
cost centre, responsibility for expenditure is made explicit. There should never be a
case of expenditure not being identifiable with any particular department.

Provided the budget is formulated on cost centre lines, better control of expenditure is
achievable by grouping expenditure according to responsibility and comparing it with
budget. It is then perfectly clear who is to answer for variance from budget.

The new cost centre code is designed to place greater emphasis on responsibility
accounting up to 30th June, 1974; ten cost centers were in use. These have now been
extended to thirteen and re-ordered so that their sequence corresponds to the
production process. The code numbers given to each cost centers conform to a
pattern which, it is hoped, will eventually apply uniformly throughout the nationalized
industries of Bangladesh. Broadly, the pattern is:

Manufacturing, packing and storing take the digits    : 00-39
Ancillary services to the Mill take the digits        : 40-78
Administration takes the digits                       : 79-99

Applying the broad pattern to the Sugar Industry gives the following cost centres and
codes which should be used from the 1st July,1974:

Cane procurement                                         : 01
Transport                                                : 02
Crushing & Mechanical maintenance                        : 05
Sugar processing & Chemical control                      : 06
Sales & Distribution                                     : 35
Steam Generation                                         : 40
Power Generation                                         : 41
Electrical maintenance                                   : 44
Civil maintenance                                        : 45
Cane development                                         : 63
Experimental farm                                        : 64
Machine cultivate                                        : 66
Accounts                                                 : 79
Administration                                           : 82




Guidance on the general sphere of responsibility included in this cost centre may be
obtained from the following descriptions and definitions.

01. CANE PROCUREMENT:
The Cane Procurement Officer has the responsibility for this cost centre. It includes
the purchases of cane form supervised and non-supervised growers, loading cane into
transport and off-loading cane at the cane carrier. Lt includes the necessary
procurement of rail wagon for transportation to the mill as well as lorry hire and
contracted transportation by road.

02. TRANSPORT:

Normally headed by the Garage Engineer, transport cost centre includes the running
and maintaining of tractors,trucks,jeeps,lorries,cars and locomotives which are all
owned by the mill.

05. CRUSHING & MECHANICAL MAINTENANCE:

All activity from the cane carrier, through the Mill House and the Mill Train, to the
dispatch of bagasse to the furnace and the measuring of mixed juice at the scale tank
or measuring tank comprises the crushing and mechanical maintenance section. The
Mechanical Engineer is usually responsible, although delegation to a Mill Foreman is
possible.The men engaged in this cost centre ,as well as looking after the crushing
operation,may also be engaged in maintenace work of a mechanical nature in other
departments, particularly in Sugar processing and Chemical control.

06. SUGAR PROCESSING AND CHEMICAL CONTROL:

The Chief Chemist has the responsibility for this cost centre.It includes clarification of
mixed juice, evaporation, crystalization, centrifugal separation , drying and
bagging.The laboratory is included Cleaning of evaporators,vacum pans,crystalization
etc.clearly is also part of the function of this cost centre, but mechanical maintenance
is generally not.Unless a separate squad of mechanical workers responsible to the
Chief Chemist perform mechanical maintenance(applicable in North Bengal Sugar
Mills) then that function will form part of crushing and mechanical maintenace cost
centre.

35.SALES AND DISTRIBUTION:

Once sugar is bagged,the responsibility for storing it in the Sugar Godown falls to the
Stores Officer.Sales and distribution cost centre includes the storage of
sugar,stacking,unstacking, and loading into rail wagons when dispatched, molasses
storage and distribution costs also come under this cost centre, as does costs
attaching to the disposal of molasses by tender.

40. STEAM GENERATION:

Ultimate responsibility for this cost centre rests with the Mechanical
Engineer.Delegation to the Senior Foreman is common,however the cost centre
includes the Boiler House and Furnaces and the area of storage for bagasse,Furnace
oil and other fuels.

41. POWER GENERATION :

Again,Usually the ultimate responsibility of the Mechanical Engineer,the power house
function is delegated to a Senior Foreman or other responsible Officer.Electrical
Generation by steam turbine and disel generator make up the activities of this cost
centre.

44.ELECTRICAL MAINTENANCE:
Electricians operating anywhere in the Mill on the repair and maintenance of electrical
equipment comprise the electrical maintence cost centre.The head is likely to be the
Senior Foreman or other senior in charge responsible ultimately to the Chief Engineer.

45. CIVIL MAINTENANCE:

Repair of roads, bridges,factory buildings,cane centres etc.,is in the spare of activity
of the Civil Maintenance engineer.Although in the majority of cases,the materials used
in making the repair or maintenance work are a charge against the cost centre
benefiting by the work,the Civil maintenance cost centre trains and organises and
bears the cost of the manpower involved.

63.CANE DEVELOPMENT:

This cost centres is the Cane Development Officer's responsibility.It includes the work
of supervising growers,issue of seed and fertilizer,inspecting and surveying crops and
organising sources of finance for gropwers.

64.EXPERIMENTAL FARM :

Covers the operation of the Mills' experimental farm where development of sugar
cane varieties,types of inter-croping,fertilizer usage etc.,are carried on.

79. ACCOUNTS:

All staff and department who are resposibility to the Chief Acountant.This would
normally comprise Cane accounts, Stores Accounting, General
Accounts,Cashiers,Time office,Farm Accounting and Purchase Accounting.

82. ADMINISTRATION :

The General Manager of the Mill and his immediate assistants and staff are the main
function in administrataion.Also included however, are sequrity, medical, labour
officer and store keepers and staff (other than stores accounting staff) Medical
comprises the use of medicines for factory personnel generally, the Medical Officer
and his staff,the Mills' Hospital (if it has one) and its requirements.

Most Mills in the corporation will find thatthe cost centre enumerated above will be
adequate for their needs.In some cases,additional cost centres will have to be added
to the list given above.

Carew & Co.operate a distilling plant and manufacture pharmaceutical products.Other
Mills have a small foundry for the manufactures of farming implements and gur
making equipment.In such cases,the following additional cost centres may be used.

Distilling                          Code   08
Pharmaceuticals                     Code   09
Implements foundry                  Code   10

The cost centre code does not extent to commercial farms.Such entries should be
treated as separate business within an enterprise,employing a separate accounting
system.The commercial farm activities are incorporated into the Sugar Mills through a
Farm Current Account.

BALANCE SHEET ACCOUNTS CLASSIFICATIONS (10000 TO 49000)
Share Capital and Reserves(10000 to 15000):
Board Group Classification             Detail Classification
10000 Share Capital
11000 Capital Reserve                 : 11100 Profit on sale of fixed assets
                                       11200 profit on revaluation of fixed assets
12000 General Reserve
13000 Tax Holiday Reserve
14000 Other Reserves
                                      : 15100 Profit and Loss Appropriation A/c.
15000 Profit and Loss Appropriation
Account                                15200 Profit Increase/Decrease for FG stock
                                       adjustment.
Loan Capital (16000 to 17900):
16000 debentures
17000 Long term Loans                 : 17100 BIDC Loan
                                       17200Government of Bangladesh Loan.
Current Liabilities(18000 to 22000):
18000 Cash Credit Account
19000 Creditors                       : 19100 Sundry Creditors
                                       19200 Salaries & Wages Payable
                                       19300 Unpaid Salaries & Wages
                                       19400 Sequrity and other Deposits
                                       19500 Staff Income Tax
                                       19600 Provident Fund & other Funds
                                       19700 Loans from Project/Companies
                                       19800 BSFIC Current Accounts
20000 Provision for leave pay &
Gratuity

21000 Provision for Doubtful Debts
Fixed Assets and Depreciation (23000 to 35000):
Board Group Classification             Detail Classification
23000 Land                            : 23100 Land Cost
                                       23200 Land Development Cost
                                       23300 Roads
24000 Building & Other Construction : 24100 Factory Buildings
                                       24200 Office Buildings
                                       24300 Residential Buildings
                                       24400 Centre Offices and Weighbridge
                                       Cabines
                                       24500 Water & Electric Installations
                                       24600 Other Construction
                                       24700 Other Buildings
25000 Plant & Machinery               : 25100 Factory Plant & Machinery
                                       25200 Boilers (Steam)
                                         25300 Power House Machinery
                                         25400 Workshop Machinery
26000 Equipment                      : 26100 Factory Equipment
                                         26200 Construction Equipment
                                         26300 Laboratory Equipment
                                         26400 Transport Equipment
                                         26500 Weighbridges
                                         26600 other Equipment
                                         26700 Loose Tools
27000 Furniture,Fixture and Office       27100 Furniture
                                     :
Equipment's
                                         27200 Fixture
                                         27300 Office Equipment
28000 Vehicles & Transport           : 28100 Tractors
                                         28200 Trailors
                                         28300 Trucks
                                         28400 Locomotives
                                         28500 Jeeps and Cars
                                         28600 Others
29000 Sundry Assets                  : 29100 Books
                                         29200 Crockery and Cutlery
                                         29300 Linen,Blankets & Furnishings
                                         29900 Others
30000 Accumulated Depreciation           30100 Factory Buildings
                                     :
Building & Construction
                                         30200 Office Buildings
                                         30300 Residential Buildings
                                         30400 Centre Office & Weighbridges
                                         30500 Water & Electrical Installation
                                         30700 Other Buildings
31000 Accumulated Depreciation           31100 Factory Plant & Machinery
                                     :
Plant & Machinery
                                         31200 Boilers (Steam)
                                         31300 Power House Machinery
                                         31400 workshop Machinery
31000 Accumulated Depreciation           32100 Factory Equipment
                                     :
Equipment
                                         32200 Construction Equipment
                                         32300 Laboratory Equipment
                                         32400 Transport Equipment
                                         32500 Weighbridges
                                         32600 Other Equipment
                                         32700 Loose Tools
33000 Accumulated Depreciation       : 33100 Furniture
Furniture,Fixture and Office
Equipment
                                     33200 Fixture
                                     33300 Office Equipment
34000 Accumulated Depreciation      : 34100 Tractors
Vehicles and Transport
                                     34200 Trailors
                                     34300 Trucks
                                     34400 Locomotives
                                     34500 Jeeps and Cars
                                     34600 Others
35000 Accumulated Depreciation      : 35100 Books
Sundry Assets
                                     35200 Crockery & Cultures
                                     35300 Linen, Blankets & Furnishing
Current assets (36000 to 48000) :
36000 Cash in hand                  : 36100 Cash in head Office
                                     36200 Postage & Telegram Inprest
                                     36300 Guest House Imprest
                                     36400 canew Centre Imprest
                                     36500 Others
37000 Cash in Bank                  : 37100 Current Accounts
                                      37200 STD Accounts
                                     37300 Sales Collection Accounts
                                     37400 Sales Deposit Accounts
                                     37500 Share Application Money
                                     37600 Staff sequrity Deposits A/C
                                     37700 Fixed Deposit Accounts
                                     37800 Dividend Accounts
                                     37900 Others
38000 Stock of Finished Goods       : 38100 Stock of Sugar at Variable Cost
                                     38200 Stock of Mollasses
                                     38300 Adjustment of Sugar stock value
39000 Work-in-process               : 391001 Stock of Bagasse
                                     39005
                                     39006 Work-in-process Sugar Processing
4000 stores control account         : 40100 Construction Materials (Store manual
                                      Group No. 1000000
                                     40200 Fuel and Lubricants (Store manual
                                     Group No.500000)
                                     40300 Production Materials & Chemical
                                     (Store manual Group No. 600000)
                                     40400 Loose Tools (Store manual Group No.
                                     900000)
                                     40500 Mechanical Spare Parts (Store manual
                                     Group No.1700000)
                                    40600 Electrical Spare Parts(Store manual
                                    Group No.1800000)
                                    40700 Medical Suppliers(Store manual Group
                                    No.1500000)
                                    40800 Stationery(Store manual Group
                                    No.1600000)
                                    40900 Miscellaneous(Store manual Group
                                    No.2000000)
42000 Trade Debtors                : 42001 to 42999 by name
43000 Loans and Advance            : 43100 Loans to Projects/Companies
                                    43100 Loans to to Staff
                                    43300 Advance Against Salaries
                                    43400 Advance Against Travel

                                    Allowance/Dearness Allowance
                                    43500 Advance against expenses
                                    43600 Advance against supplies
                                    43700 Advance payment of taxation
                                    43800 Advance to Cane Deptt/procurement
                                    43900 Others
44000 Deposits & Repayments        : 44100 Central Excise Duty
                                    44200 Molasses permit fee
                                    44300 other Deposits
                                    44400 Prepaid Insurance
                                    44500 prepaid land Revenue
                                    44600 Prepaid Rent
                                    44900 Other prepaid Expenses
45000 Stores in transit
46000 Inventory Adjustment
47000 Deferred Revenue Exp         : 47100 Cane Development Expenses
                                    47300 Preliminary Expenses
                                    47900 Other Deferred Expenses
48000 Farm & Other Subsidiary
Undertaking
Income Accounts (50000 to 56000)
50000 Sales of Sugar               : 50100 Sales of Government Quota
                                    50200 Sales of Free Quota
                                    50300 Excise Duty
                                    50400 Govt.Dist.Cost Levy
51000 Sales of Molasses            : 51100 Sales of Molasses
                                    51200 Permit Fees
52000 Miscellaneous Incom          : 52100 Interest
                                    52200 House Rent
                                    52300 Sales of Empty Containers
                                    52400 Sales of Bagasse
                                   52500 Transport Hire Charge Recover
                                   52600 Opportunity Gain-Bagasse
                                   52700 Opportunity Gain-Mollases
                                   52900 Others
Cost of Production Accounts(57000 to 59000) :
57000 Cost of production          : 57001Cost of Production cane Procurement
58000 Change in work-in-process    57002 Cost of Production Transport
and finished goods stock
                                   57005 Cost of Production Crushing &
                                   Mechanical
                                   57006 Cost Production Sugar Processing and
                                   Chemical Control
Expenditure (60000 to 99000)
60000 Direct Materials            : 60101 Sugar Cane Purchase
                                   60201 Freight and Carriage on Cane
                                   60301 Loading and Unloading Charges
                                   60401 Commission paid to Bank
                                   60506 Lime
                                   60606 Sulphur
                                   60706 Other Chemicals
                                   60806 Packing Materials
                                   60906 Others
61000 Salaries and Wages          : 611 Salaries and Wages Seasonal Staff
                                   612 Salaries and wages Permanent Staff
                                   61301 Cane Carrier Feeding,Including
                                   loading Cane at Centre
                                   614 Profit Bonus
                                   615 Employees Con. to provident Fund
                                   616 Leave pay and Gratuity
                                   617 Overtime
62000 Staff Welfare Expenses      : 621 Medical Expenses Reimbursed
                                   622 Sports and Games
                                   623 Others,Including Uniforms
63000 Training Expenses           : 631 Salaries and Wages
                                   632 Travelling Expenses
                                   633 Subsistence Allowance
                                   634 OtherTraining Expenses
64000 Repair and Maintenance      : 641 Consumable Spares and Stores
Material
                                   642 Lubricants
                                   643 Other Factory Supplies
                                   644 Building Maitenance Materials
                                   64506 Filter Press Cloth
                                   64606 Laboratory Expenses
65000 Repairs and Maintenance     : 651 Repairs and Maintenance-Building and
outside parties                     Structures
                                    652 Repairs and Maintenance -
                                    Plant,Machinery and Equipment
                                    653 Repairs and Maintenance-Furniture and
                                    Fittings
                                    654 Repairs and Maintenance-Others
67000 Fuel and Power               : 671 Petrol
                                    67240 Bagasse Fuel
                                    673 Disel Fuel
                                    674 Furnace Oil
                                    675 Electric Power from Outside
                                    679 Other Fuels
68000 Other Indirect Materials     : 681 Printing,Stationery & Office Supplies
                                    68282 Medical Supplies
                                    683 Other Provisions and Supplies
69000 Rent,Rates & Taxes           : 69201 Local Rates & Taxes on Cane Centres
                                    69282 Local Rates & Taxes Mill
                                    69382 Land Rent
                                    69482 House Rent
                                    69502 Vehicles Tax and Fees
70000 Insurance                    : 70002 Insurance on Vehicles and Transport
                                    70035 Insurance on finished stocks
                                    70040 insurance of Boilers
                                    70082 Insurance all others
71000 Depreciation
72000 Cane Development exp         : 72163 Seed Distribution Costs
                                    72262 Others
                                    72364 Seed,Fertilizer etc.for Experimental
                                    Farm
73000 Demurrage & Wharfage
74000 Travelling & Conveyance      : 741 travelling Allowance and Dearness
                                     Allowance
                                    742 Conveyance
75000 Postage,Telegrams and        : 751 Postage And Telegram
Telephone
                                    752 Telephone
76000 Inaugurals,Ceremonials and   : 76100 Inaugurals
Entertainments
                                    76282 Ceremonials
                                    76300 entertainment
77000 Head Office Overhead         : 77182 Head Office Charges
                                    77282 Head Office General Exp.
78000 Interest on loans and        : 78182 Interest on Overdrafts
Overdraft
                                    78282 Interest on Loans
79000 Bank Charges
80000 Professional and Legal Exp.   : 80179 Audit Fees
                                     80282 Legal Fees
81000 Directors Remuneration
82000 Subscriptions & Donations     : 82102 Donation and Aids
                                     822 Trade and Periodical Subscription
                                     823 Other Subscriptions
83000 Bad Debts
84000 Preliminary Expenses
85000 Advertisement and Publicity   : 851 Advertising
                                     85235 samples
                                     853 Other Publicity
86000 Stacking,Loading,Docking and : 86135 Stacking & Loading of Sugar
Handling Charges
                                     86235 Docking of Sugar Godown
                                     86305 Stores Handling paid to outsiders
87000 Miscellaneous Expenses
99000 Profit & Loss Account

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