INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS
OF PAKISTAN
CAG I
DRAFT COST ACCOUNTING GUIDELINE (CAG)
FOR CHEMICAL FERTILIZER INDUSTRY
CONTENTS
1. INTRODUCTION
2. OBJECTIVE
3. MAINTENANCE OF RECORDS
4. COST ACCOUNTING RECORDS
4.1
Material
4.2
Salaries and Wages
4.3
Utilities
4.4
Repairs and Maintenance
4.5
Depreciation
4.6
Insurance
4.7
Other Overheads
4.8
Quality Control Expenses
4.9
Joint Products
4.10
Transfer to the Next Process
4.11
Work-In-Process and Finished Goods Inventories
4.12
Cost Statements
4.13
Adjustment of Cost Variance
4.14
Administrative Expenses
4.15
Selling and Distribution Expenses
4.16
Statistical Statements and other Records
4.17
Reconciliation of Cost and Financial Accounts
5. GENERAL INFORMATION
6. COST STATEMENTS
6.1
Intermediary Product Cost Statement
6.2
Main Product Statement showing Cost to Make and Sell
6.3
Handling and Storage Cost Statements
6.4
Plant Engineering Department Cost Statement
6.5
Plant Technical Department Cost Statement
6.6
Factory Management Department Cost Statement
6.7
Statement showing the Cost of Power Generated/Purchased and
Consumed
6.8
Statement showing the Cost of Steam Raised and Consumed
6.9
Air-Compressing and Apportionment Expenses
6.10
Statement showing the Cost of De-Mineralized Water and
Apportionment to User Departments/Cost Centers
COST ACCOUNTING GUIDELINE FOR
CHEMICAL FERTILIZER INDUSTRY
1.
Introduction:
1.1
The Securities and Exchange Commission of Pakistan (hereinafter called the
Commission) has issued the Companies Cost Accounting Records (General Order), 2008
(hereinafter called the Order) prescribing maintenance of cost accounting records and
compliance with the provisions of Companies (Audit of Cost Accounts) Rules, 1998
(hereinafter called the Rules).
1.2
Pursuant to the provisions of the aforesaid Order, every company engaged in
production and manufacture of fertiliz