North south University

Course: Managerial Accounting 333

Project

Submitted toAfrin Rifat (Ani)

Submitted byGroup A

Letter of transmittal
Date: 15 April,2015
Afrin Rifat
Course Instructor, Introduction to Managerial Accounting
School of Business
North South University,
Bashundhara, Dhaka.

Subject: Seeking consent for submitting the Project report.

Dear Sir/Madam,
We are pleased to submit our project report on our manufactured product. Our report focused on
costing schedule, pricing strategies, CVP analysis, product costing method and cost/revenue
allocation methods.
From this we understand how managers use and analyze cost accounting information for product
costing. Moreover we learn about costing system, pricing approaches and cost allocation
practices. Also, Performance evaluation and budgets making develops our understanding. We
enjoyed working on this report and hope you will find it innovative.

Sincerely,

Name

ID

Abstract

Background
We have chosen Royal Hand Fan as our product. It is inspired by the Mughal Handicraft. The
invention of this device attributed to the Mughal Emperor Akbar. It was called Punka at that
time. The use of hand Punka or fan dates from olden times.

By that time the Mughal fan consist of large flap, which slaves hold over a grandee as he sat
amidst pile of cushions. Another kind of hand fan was carried by rajas bearers named Punkha is
still common in royal family. It was made of about five feet long with a circular frame fixed to
the side forming the shape of letter P. The frame was covered with fabric having beautiful print
and hand stitching and furnished with a full flounce about a foot in depth of the same stuff. There
is also mention of hand fan made by pea-cock tails and feather used by royal personalities. All
kind of hand fan including fly switches was common use until the last decade of eighteen
century. Other Punkha is still common in our country made from the branches of plam tree.

Crafts are an integral part in the life of a Bangladeshi, despite the rapid social and technological
changes that are taking place. In the Western world, special artists create craft objects and they
are considered as luxury items. But in Bangladesh like many other developing countries it is the
main source of employment for a vast majority of the population, next to agriculture. The reason
behind selecting such kind of product is to promote the history of royal emperor and inspire the
handicraft.
Handicrafts bring a great sense of grace to every home be it the poor hut or the opulent star hotel.
There is a timeless quality in these craft objects, for they have evolved over centuries and
continue to be made even today with the same sentiment.

Handicraft
Handicrafts can be defined simply as objects made by the skill of the hand and which carry a
part of the creator as well as centuries of evolutionary tradition. It can range from the simple
clay- lamps to the diamond -studded jewellery items. Handicrafts consists of objects created by
skilled people for religious rituals, like wedding and celebrations and for personal use as well as
luxurious ones created by specialized craftsmen for specific requirements.
There are three main classifications of crafts .

Folk crafts

Religious crafts

Commercial crafts.

Our product is from Folk Craft. People for their personal use or for a limited client base
create folk crafts. Folk embroideries done by the village women folk of Bangladesh are a good
example. There are craftsmen who are specialized in creating textiles or jewellery which meet
the criteria set up by a particular group of people, usually a particular caste or community. They
have their own distinctive designs and styles.
Though we are manufacturing a hand crafted product, but we have competitors like Arong and
Anjans in the market. Both of them are renowned brand and meant to generate an emotional
connection and loyalty while bringing people together to showcase the best that Bangladeshis
highly skilled artisans have to offer.
The customers of Aarong are not only the urban Bangladeshi communities but also include
Bangladeshis expatriates looking for products that connect them to their roots and represent their
identities as a Bangladeshi. The customers also include foreigners visiting Bangladesh, and as a
result Aarong was mentioned in the guide to Bangladesh, Lonely Planet.
Besides male, female and babies garments Anjans making also home textiles and handicrafts
that marketing run only on Anjans showrooms. In the line on Bangladesh fashion design Anjans
wing reached over the mass people. Anjans contribution is not only in the making fashion line
rather has also arranged work arena among the poor village women.
As you can see we are in a competitive market. But our competitor cannot manipulate the market
and the pricing of our product as we sell unique product which is export quality.

Manufacturing Process

We will have two portions in the manufacturing process. All the work will be done by one
person. In the first part we will decor the handle and in the second part we will make ready the
circle. After finishing both portions we will join them and make a beautiful hand fan.

1. At the first step we will have to cover up the PVC with nice red leis and secure the
starting and end part with glue. Then take the golden leis and follow the same process but
this time put a gap so that the red leis can be seen and it will enhance the beauty.
2. Take the white big pearl and put it in the both side of PVC to fill up the gap. Secure the
pearl with glue. This is how the first portion is done.
3. Lets go to the next part. Take the golden net and cut it off in a circle about 27cm.
followed by this, take the circle and cover the empty part in the middle with the golden
glittering net. Secure it with glue. Cut off extra fabric in the edge of the circle to give a
proper finishing.
4. Therefore give a 4 minutes rest and cover the circle with the frizzy golden leis. Use glue
gun to secure the leis.
5. After this take the white pearl leis (small) and put it in the edge of the middle of the
circle. Also we will have two borders of white pearl in the middle edge.
6. Then the exciting part comes by securing the glittering rose in the upper part of the
handle. This will give a great look to the handle.
7. Lastly, put the pea-cock feather on the circle to enhance the beauty of the fan.
8. Finally, join the both part of the hand fan with metal wire so that it stays strong.
By following these instructions a person can made this hand fan within 2 hours including the
rapping of the product to deliver.