.2 to observe. The part of the

.2 Activity Analysis


2.2.1 Cost
Accounting Project

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Cost accounting is a bridge between financial and management
accounting. Cost accounting is defined as “a technique or method for
determining the cost of a project, process, or thing…This cost is determined
by direct measurement, arbitrary assignment, or systematic and rational


First of all, I had a meeting with the Process Improvement Department
Manager. Mr. Duran told me about the reasons for initiating the cost accounting
project and the progress of the work which have been done before me. He told me
about the progress of integrating the Cost Accounting function to develop the
ERP System. It was a big project because the company is a large-scale industry,
so there were many products to observe.


The part of the project, which needs the calculating labor cost, was
assigned to my responsibility by the manager. The raw materials and
consumables, the general production expenses, which are the other costs have
been collected by my Supervisor. Labor cost is a direct cost, so I could
determine directly that how much is used for which product or which product
group. I used Time Study Method to reach the direct labor cost.


2.2.2 Time Study Method


Firstly, I discussed about the Time Study Method with my Supervisor.

Time Study Method is described as in four steps, which are Analysis,
Measurement, Synthesis, Reporting and Standard Update. Time Study Method was a
simple method, I used just a stopwatch and a time study sheet. Before I began
the work, I observed the facility layout, the machines and the tools, which are
used in a production and a packing line. The machines are, Horizontal Packing
Machine at Packing Department, Bread Slicing Machine at Production Line,
Slicing Machine in Bakery Production Line, Ironing Machine at Packing
Department so on. Also I learned the subprocess of the products. They are,
Tagging a Package at Packing Department, Cutting Stuffing at Production Line,
Kneading Dough at Bakery Production Line so on. After my observations, I began
to calculate the meantime for each product. I observed that a employee could be
cause for the variance between the other employee on the same work. It is about
the employee’s performance understood that any employees have a big factor on
the cost so pricing a product. I consulted to my Supervisor about employee’s
work experience and I paid attention to work with employees who have normal
speed on work. Taking into accounting all these factors, my time measurement
data got better.