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In this section we summarize the key lessons from Meesho's entrepreneurial journey, including perspectives from the founders themselves. Key Learnings from Meesho's Venture Building Journey Meesho's journey exemplifies several crucial aspects of venture buildi...

Below are important questions and their answers from module 3 elaborating on the Lean method of entrepreneurship: 1. What is the Lean Method and how does it differ from traditional entrepreneurial approaches? The Lean method is a set of tools and decision-maki...

Below are important questions and their answers from module 4, focusing on decision-making, the case method, and the Fashnear/Merishop/Meesho case study: 1. What is decision-making and why is it particularly challenging for entrepreneurs? Decision-making is a ...

Uses of Financial Reports External users rely on financial reports: Investors – assess financial health before investing. Lenders – evaluate risk before giving loans. Tax authorities, suppliers, and customers – review company’s financial status. Int...

R&D Project Decision Example Project cost: 100 m Estimated benefits (original): 160 m Amount already spent: 40 m (this year) Remaining spend: 60 m (next year) Revised estimated benefit: 90 m Decision point: If you include the total cost (100 m), revenu...

1. Illustrative Example: Government Hospital Tender Context: You work for a government hospital inviting tenders for two widely used tablets. Products: Tablet A (Adult): Contains a few chemicals with higher dosages. Tablet B (Children): Shares three ...

Cost Sheet Preparation: Autocomp Ltd 1. Cost Sheet Overview Definition: Final output of the costing department showing cost of production per unit. Service Industry: Analogous cost sheet shows cost of delivering each service. 2. Company & Products Compa...

Service Sector Costing 1. Importance of Service Sector Contributes over 61 % of GDP (up from 59 % two years ago) Generates ~25 % of government tax revenue via service taxes Includes banking, insurance, transport, healthcare, tourism, telecom, IT/BPO, educatio...

Introduction Company: RK Forging, based in Coimbatore. Industries Served: Power, Automotive, Oil & Gas, Construction, Mining, Locomotive, Marine, Aerospace. Capacity Utilization: Currently 62% (Idle: 38%). Profitability (2014): Revenue: ₹137 million Prof...

Broad Methods of Product Costing There are two broad methods of product costing: 1. Job Costing Used by firms in: Construction industry Consulting Software And many others Characteristics: Jobs are different and specific to customers. 2. Process Costin...

1. Job as a Cost Object Definition: A job is treated as a cost object. All costs related to that specific job are collected under its cost object. Job Cost Sheet: Opened as soon as a customer gives a job. Contains a unique job code, which may include: Pr...

1. Extension of Job Costing Definition: Customer costing extends job costing by pooling costs of all jobs executed for a single customer, making the customer itself a cost object. Purpose: Determine customer‐level profitability Rank customers by profit co...

1. Process Industries Definition: Firms producing identical products or services through a continuous process. Examples: Manufacturing: Cement, fertilizer, steel, rice noodles, paints, chemicals Service: Banking, insurance, postal, courier Costing Meth...

1. Introduction Real‑world reality: Processes incur losses, wastage, defective units. Loss timing: Throughout process (e.g., chemical evaporation) At end of process (e.g., assembly defect detected) Loss classification: Normal loss → expected in effi...

1. Definitions & Context Joint Products: Two or more products of significant value emerging simultaneously from a single production process (e.g., petrol & diesel in oil refinery). By‑Products: Secondary outputs of relatively low value (e.g., molasses from ...

1. Definitions Direct Costs Traceable to a specific product Examples: wood, plywood, laminations Indirect Costs (Overhead) Cannot be traced to a single product Examples: Supervisor’s salary Factory rent Equipment depreciation 2. Allocation Challe...

1. Allocation Principle Cause & Effect: A product should absorb the cost of any department whose services it uses. 2. Department Groups Production Departments Directly involved in manufacturing (e.g., Assembly, Maintenance, Inspection, Packing, Stores, D...

Introduction Let us start our discussion with a costing framework suitable for decision making. The cost statement discussed so far is based on the principle of absorption costing. An alternative costing framework is marginal costing or variable costing. Ex...