 Module 143 and in production analysis we are going to study the accounting cost as the production process it goes on there are the various types of the cost but the issue is this that either the producer is going to have the notation or the registration of all these type of the cost and if I keep this word in front of you, it will be that when a production process starts, then there is a different type of production, but when the production process is going on, then there are a lot of such expenses that we have already expected, they can also be and similarly it can be that when we are talking about the documentation, then we have already applied the documentation, so that's why there can be a lot of expenses, which when a producer or entrepreneur is keeping a book, then he doesn't object to his own account or is doing it in a verbal way, so basically the cost accounting procedure if we look at it, then that is a process that involves basically the registration of all types of the cost in the proper ledger or in the proper book shape, so the cost they will be entered in the particular type of the setup, I mean might be there are certain units of production, we have something like this, it can be that we have a valuation, it is difficult, so is it going to be in the proper form or not, so basically the cost accounting involves that all the types of expenses are properly entered in the form of ledger or in the form of a set up or in the current computerized setup, so that it can be an assessment of it, now coming to the point that what was the cost accounting from the beginning, so far we have the data of different products, so then it comes to that, that when industrial production started or industrial revolution, because the size of the firms started to grow, the inventory became difficult, the purchase of inputs, the trade with foreign countries started to increase, the transportation cost started to increase, so when the size of the working enhancements started to expand, and when this setup started to happen, the manager was first at a small level of the business, he was controlling it himself, so he used to keep the account book in the ledger many times, but when this kind of setup happened that more number of the people they are coming to organize a business, so in order to keep the total distribution or account book with them, all these things were required, and if I relate it to him that if we go into our history, then our beloved Prophet, Prophet Muhammad, if we look at the hadith of the Prophet, we get a very clear lesson that we, Muslims had this order that whenever you are doing trade, trade, trade, then you reject Ashiya, write to Muwade, and if not, then at least decide on it, and in the same way when it comes to the value of things, then all the particular and assess the facts and evaluate them, so if we look at both ways, then we had a order, maybe for some others as well, some things were rejected, but people did not practice them, so when there was the expansion in the business, then at that time it started to be rejected, and even now, if we look at it in the current era, then in our agricultural setup, there are a lot of responsibilities, they are not rejecting these things in the right way, it is possible that the firms on a large level are keeping all their expenses and the account book, so otherwise the small level of agricultural setup or perhaps others are still not taking the cost accounting, now if we look at some of its steps, what is there in the cost accounting, so first of all we have to look at the entrepreneur, that he has to identify that in which part the expenses are being involved, or what is the activity of his production process which is the bias of his expenses, and that is why he identifies and classifies his processes in the form of cost, when we have a setup that these are our expenses, then we look at their monetary value, now here we will look at the next modules, that for us, doing economic valuation or accounting valuation is sometimes very difficult, so then there are many different methods for that, but in short, we will say that the aspects that we have taken as a cost, then they are assigned as a cost, and mostly that cost is seen on the basis of the current factors of production, the market price, their individual calculation means how many units were bought, how much they spent, then the third step is that, now we can compare them, means you can say today that how many units are off, energy means to run a plant, how much oil or electricity was bought this month, how much was bought last month, or how many workers were paid this month, how much was bought last month, how much was bought last month, how much was bought last month, or how many workers were paid this month, how much was bought last month, and in fact if we count this month, then in the last year of this month, how much you had outlailed to buy units off labor, so that is why we go into comparison here, comparison from one process to other process can also be done, and based on that, then there is an assessment of performance, now when there is an assessment of performance, then performance can also be segment wise or activity wise, and then after the analysis, this cost accounting it provides us the opportunity to have the future planning and the potential business decisions, now coming to the point that if our cost accounting is the same, then we say that it can depend upon the various aspect, means this can be done on the nature of the job, because in a process of business, there can be many types of jobs, means the nature, your skilled labor is the job of the author, your permanent labor is the job of the author, your seasonal labor can be of the author, if you want to apply for transportation then if we count that, then it must be coming in some activities, so we can look at our various costs based on activities, then in the production process, if we look at it, then there will be a detailed process in our production, means if there are very small units in different plants, and then their assembly, after the assembly, there is packaging and distribution, so likewise we can look at the entire cost of the processes, where the individual cost of the process is coming to us, then to do a business, we sometimes ascertain an ideal or threshold level, and that provides us the standard costing, now this standard costing is the same in which we say that if we look at it as construction, then a construction engineer will devise, that if we have to make a house of 5 times and the size of the plot is so big, since the standard is so small, it has to be so small, it has to be so labor-utilized, how much steel it has to be used, so the covered area of an average house can cost a standard, and then it will provide us further insight that we are exceeding the standard, or we are going below the standard during construction, so it will work as a benchmark, in the same way sometimes we can write the total cost of the whole, but sometimes we can desegregate all the segments in it, and we can ignore it, now if we look at it, what is the benefit of it, what is the significance, if it is so cumbersome procedure, either it is useful or not, so when we say that we have to plan for the future, or we have to devise certain further production planning or the decision, then it should be based on certain data, and if that data is not particularly accurate and according to the market rate, it will not be useful for the production engineers or the planners, so accurate information of the cost are the very crucial part to have the proper performance evaluation and even for the future planning, and this informed decisions are the main thing that will provide us that how there is the profit in the business, or either there is a loss in the business, and when we have to provide the performance of certain sectors, it is not possible that in total we are gaining something, or if I say that we have 5 or 6 Shobajat, then it is possible that the business is surviving in total, but to assess whether all those 4 or 5 Shobajat are working in the same way, it is possible that the production procedure is going on in a different way, transportation is working the inventory is different, the sale and purchase is different, the marketing is different, so to individually assess each of the Shobajat's performance, this will be a very useful technique that we can see in their performance space, and this performance will further provide us the opportunity to have the efficient level of that segment or the structure, and in the same way, when we have to do proper budgeting, that budgeting requires the proper resource allocation, so that resource allocation will not be possible until we have the proper pricing units and the proper all setups data available, so cost accounting is a very useful, very important to have the proper accurate information not only related to past, but also for the planning of the future production process, thank you.