Notesale: Turn your study into money

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Cost Reduction and Cost Control

To ascertain the cost:
For a power Generating plant we have to ascertain the price to be fixed for selling power and hence
various factors involved in production of power are analyzed
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, which play a prominent role in fixing the costs
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Cost of men & materials used are taken into consideration apart from maintenance costs of the
equipments
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Fuel used is lignite
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Oil is also used for initial lighting up of the plant
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Hence as per the
Government policy the value also goes up
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During this computer age, the furnace lighting up is fully computerized rather than manual
lighting
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Engineering Personnel were sent abroad for training and hence the costs of these expenses were
taken into consideration
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Their
participation in the management in fixing the value of the finished product-‘Power Generation’ in
our plant has increased
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So, the Accountant has his eyes open for all activities in our organization, which give rise to a
change in fixation of price
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Recently Life Extension Program was taken up in a Thermal Station, because the Accountants
critically analyzed and said that the value of money invested in the equipments installed and the
expenses borne for production are resulting in loss
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This was done successfully in two units and has gained momentum in profit
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So, this has enabled the technical personnel to give more allocation of their work and time to set
right to enable that Thermal Station gains profit
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It has also mentioned about the heavy dues from APSEB, TNEB, KSEB etc, which induced the
management to take up the issue with Delhi Authorities, Ministry of Coal & Power
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In giving details about Energy Conservation aspects, several decisions like reduction in no load
running of equipments, reduction in auxiliary consumption of power, saving electrical energy in
Switch Yard and boiler areas, introduction of energy efficient dyno-drives in place of DC variable
motors etc were taken up with coordination of Management Accounting
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The Accountants in an organization play a vital role in the developing trend to achieve the objective
of maximum profit with maximum utilization of manpower, effective maintenance of equipments
and minimization of all possible leaks in funds
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Hence utmost care is taken in this social responsibility by our Accountants
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Hence huge
investment was allocated for Electro static precipitator to eliminate this smoke
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-People working in Thermal Station are the work force for generation of power
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-Wasted water and slush water (called Ash slurry water) are separately collected to prevent health
hazards
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-Pumped out water from mines are diverted to nearby villages for drinking and agriculture, which
is another vital social responsibility act
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-During recent floods, the organization distributed 40,000 food packets to the affected area and
also contributed one day wage of the entire 20000 employees to the nearby State as well as for
Tamil Nadu victims
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-Afforestation is done wherever mines are cut
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-Community Development Centre, undertaking of down trodden villages nearby (adoption
scheme), Family Planning propaganda activities (which is a vitally important for our mind
boggling population rise); safety consciousness works etc are some of the many social
responsibility deeds of our organization
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-Alcoholic Rehabilitation Program, free computer training, etc were offered with good hearted and
benevolent attitude
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Appropriate allocations of funds were done by the Accounting personnel’s to exercise fully their
social responsibility for our public sector organization, where the public funds enable us to run the
show

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