11-12-2012, 12:01 PM
Tata Motors Limited in India
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INTRODUCTION
Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The Tata Motors Group’s over 55,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.''
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).
With over 4,500 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families.
In October 2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover. The Tata Aria redefines several benchmarks with its design and technologies, offering class leading features that take comfort and safety to a new height.
MEANING OF COST
‘COST’ represents a sacrifice of values, a foregoing or a release of something of value. It is the price of economic resources used as a result of producing or doing the thing costed. It is the amount of expenditure incurred on a given thing.
Purposes of cost sheet
Cost sheet serves the following purposes:
1. It gives the break up of total cost under different elements.
2. It shows total cost as well as cost per unit
3. It helps comparison with previous years.
4. It facilitates preparation of tenders or quotations
5. It enables the management to fix up selling price
6. It controls cost.
CLASSIFICATION OF COST
Cost classification is the process of grouping costs according to their common features. Costs are to be classified in such a manner that they are identified with cost center or cost unit.
On the basis of behaviour of cost
Behaviour means change in cost due to change in output. On the basis of behaviour cost is classified into the following categories:
Fixed Cost
• It is that portion of the total cost, which remains constant irrespective of output up to the capacity limit.
• It is also referred to as non-variable cost or stand by cost or capacity cost or ‘’period’ cost.
• They are created by contractual obligations and managerial decisions. Rent of premises, taxes and insurance, staff salaries constitute fixed cost.
Variable Cost
• This cost varies according to the output
• It is concerned with output or product. Therefore, it is called as a ‘product’ cost.
• If the output is doubled, variable cost will also be doubled. For example, direct material; direct labour, direct expenses and variable overheads.
Semi-variable Cost
• This is also referred to as semi-fixed or partly variable cost
• These costs vary in some degree with volume but not in direct or same proportion.
• Such costs are fixed only in relation to specified constant conditions,. For example, repairs and maintenance of machinery, telephone charges, maintenance of building, supervision, professional tax etc.