Accounting Analysis



Accounting Analysis

Overview

XYZ Company is one of the leading cement industries of the world. In the cement industry the new buzzing word is the training. There is total staff of 360 people in the cement industry. The industry of XYZ has reached the point where fresh and experienced both people can't be avoided, they would be trained. There are different reasons behind this decision such as the storage of labor, and when there is high demand of quality, and completion of work on timely basis. The use of modern technology and new techniques of construction is not known by the industry workers. Also the turnover rate of employees is high-ceilinged and the training is cost effective. Hence XYZ Company has decided to start giving training to the employees. Though there are various methods of training such as supervisory training, specific skill craft training, journey man training and many others but in different training the cost is also different.

Training Budget Plan

Estimated Cash needed to start/Estimated Budget

allocation

Weekly Costs

Salary of Training officer

$4,000

40%

Participants compensation

400

4%

Rent of equipment

200

2%

Supplies

500

5%

Delivery expense

700

7%

Telephone

700

7%

Other Utilities

500

5%

Maintainance

300

3%

Miscellaneous

200

2%

Sub Total

7500

75%

One time Cost

Equipment

1500

15%

Remodeling

200

2%

Installation charges

300

3%

Cash

300

3%

Other

200

2%

Sub Total

2500

25%

Total

$10,000

100%

In the direct cost rent of the equipment, travel cost of the trainer, labor involved such as delivery expense, supplies and cost of equipment (Robinson,2006) will be involved, while in the indirect cost telephone expense, maintenance cost and rental of using the equipment and other utilities will be involved. In developmental costs, the cost of electricity bills or the participant compensation will be involved while in the evaluation cost, the documentary cost, and other cost will be included.

Cost Factors

There are two different estimates that are required by the cost of training. One estimate is that to start up costs while the other estimate is the ongoing cost, in simple words the cost incurred by each class held.

Start up costs

Start up cost is the cost which includes the purchase of equipment (just for one time) for instance overhead projects, televisions, tape recorders, video cassette recorders, white boards. It also includes items such as special equipments through which training would be held.

Class development includes the time (Allen,2012) duration for a consultant who is giving training and the time and prepares papers and different handouts for the training. There might be more expenditure but the money is well spent. The training is not efficient and effective till it does not create fun and interest for trainee. The interest, learning goals and accomplishing those goals is essential for the success of training.

Start up cost may also be included as preparation of displays, lab areas and lab boards and different equipments, and the cost involved in the training will vary from training tom training.

Ongoing cost

Ongoing cost includes materials which are consumable such as sodas, lunch and replacement tools for instance fees of trainee any many other costs. All these cost needs to be explained in detail to take into consideration the for the specific training to be developed.

In estimating cost for the specific training in the cement industry, the following ...