Executive summary:

We are the students of M.B.A 2nd semester. We are conducting a research on Mefco Fan Company to make analyses of their cost of production as how they can control or minimize their production cost We have conducted research to compare the cost of Mefco fan and Pak fan. For that purpose we collected information from Pak fan and Mefco fan. But most of our 70% information related from Mefco Fan Company. Our research objective is to indentify the reason of deference between the costs. For that purpose we design a questionnaire according to our objectives of research. Our questionnaire are filled by 10 members of Mefco fan and then we analysis the result obtained by questionnaire. Our analysis shows that there are many reason of difference of cost. Most important reason is that Pak fan purchased raw material in large quantity in out season which create shortage raw material for other companies including Mefco fan. Due to that reason Mefco fan has to buy raw material at higher price. Costing procedure and techniques of Mefco fan are also not good and not according to standarad of Pak fan.. Labor of Mefco fan is also not trained and qualified due to which this company has to face wastage of material and repair & maintenance of cost.The finance reason is also involved in this because the Pak fan have a lot finance as compared to Mefco fan. If Mefco Fan Company give attention towards these reasons and make better polices to improve their cost system.The Mefco fan company make proper system of HRM and also need more finance to compete the Pak fan in the market. Then in future this company will be able not only to reduce par unit cost but also its profit will increase.

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Problem Statement

Difference in cost of a product named Pedestal Fan of two companies Pak Fan and Mefco.

Company Profile

MEFCO FAN is a major brand of fan making company, which I selected for my project. Fan industry mostly exists in Gujrat and Gujranwala and some other cities of the countries at a very small level. Country earns revenue from this industry by exporting fans in Middle East, Europe, Africa and US. The main work of MEFCO FAN is to export fans to other countries through which most of the revenue is earned by it, it also boast the economy of our country. The MEFCO fans were established in 1987 in by two brothers MR. ABDUL MAJEED and MR. GUL NAWAZ. They are the founders of MEFCO, and due to their hard work and struggle company is at this stage right now. Since their establishment was over 24 years of manufacturing
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experience with high quality of home appliances of various kinds. They have successfully gained worldwide recognition for their innovative designs. Company is proud to present us with the most comprehensive, diverse, and trend-inspired product line in the history.

Introduction:

Product cost analysis is the procedure of checking and analyzing the cost of a specific product. While conducting this analysis, we check How cost of product is charged by the production department? Normally, we divide total cost of production into different categories. This categorization depends upon the nature of an organization. First we have to decide whether the organization is manufacturing or merchandizing. Because, researchers adopt different procedures of cost analysis for different types of organization. Our whole discussion is about manufacturing concern. In such companies, cost of product is categorized into three parts. 1- Material Costing 2- Labor Costing 3- Overhead Costing Material costing In first step, researchers analyze the cost of raw material because raw it is most important part of total cost. We examine all costs associated with material like freight; carriage expenses etc. If the material costing is reliable and accurate then it will help to save cost at large extent. Labor costing Labor is used to convert the raw material into finished form. Researchers check the labor sheet of organizations to verify that wage rates paid to the labor is according to the work done by
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Today there are so many costs that are involved with the many options you should have to reduce costs and improve profitability over time. This is something that many companies today strive for you and if executed properly can have you taking a look and Shirley there will be something to use to improve the many different aspects of saving money.

There are many techniques and processes available to reduce costs. It is often time-consuming workers in organization. Sometimes wage rates are higher due to which total cost of product is higher. Overhead costing Final part of product cost analysis is overhead. In manufacturing concern, there are many other expenses like electricity, fuel expenses and many other expenses. For all these expenses, a separate account named overhead is prepared. Researcher check that weather actual overhead is matching with applied overhead. Because the large difference between actual and applied overhead can create problem for overestimating or underestimating of cast of product.

Objectives:

1- To identify the reasons of difference in cost of products of MEFCO FAN and PAK FAN. 2- We want to examine weather quality of PAK FAN is same with its low cost. 3- Weather the cost charged by Fan Industry of Gujart, is according to the purchasing power of general public. 4- How cost of Pedestal Fan can be reduced which is produced by MEFCO FAN. 5- We want to increase our knowledge and also skills about costing procedure.

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Limitations:

1- We have no easy access to the management of MEFCO FAN. 2- We have to spend a lot of time for this work. Shortage of time is a problem for this project. 3- This research project is expensive, because we have to pay lot of expenses. 4- No Support from organization and participants. 5- No access to experts for proof reading and guidance.

Literature Review:

This research is conducted to analyze the machine operating cost. This research identified that how many types of cost occurring while operating the machine. The first way, which is identified by researcher, is the calculation of energy expenses. Energy expenses include gas and electricity charges. Another way is to analyze the number of shifts in which employees worked. In large
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manufacturing companies, mostly employees work in two shifts, morning and evening. But in this research, researcher also identified that in some big MNC, s employees work in three shifts and each shift is for eight hours. On the basis of number of shifts and number of hours in each shift, total depreciation expenses are calculated which the most important part of total is operating cost. Moreover, in this researcher, one important part of machine operating cost is not included and that is repair and maintenance cost. This cost must be included in total cost because for proper working of machine regular repair and maintenance cost is required. Otherwise machine productivity will decrease and business may suffer loss due to this neglect. (www.alliancemfginc.com, 7th April 2011) Like oil, people enjoyed meat widely and plentifully as a part of their daily life. Meat is subsidizing in the US markets and its prices are continuously increasing as nation is becoming wealthy. Today the global demand for meat has increased too much. Due to fast animal feeding operations, the worlds meat supply was for 71 million people in 1961 but in 2007 it has increased up to maximum extent that now meat is available for 284 million people. In America, there are 10 billion animals, which are more than 15% of the worlds animal population. Nearly 30% of the ice free land is directly or indirectly involved in live stock production. Prices of meat are rising day by day. This situation may be convenient for wealthy nations but harmful for poor nations as about 800 million people already facing the problem of hunger and malnutrition. As the supply of meat to people is increasing and due to this shortage of animals is increasing which is the main factor of rising cost of world meat. This whole cost analysis of world meats production is predicting that in future its cost will increase continuously. So to stop this cost, we have to promote animal generation activities. States should provide awareness to journal public for reducing the consumption of meat because as its consumption will decrease, its supply will match to its consumption level that will help to reduce its cost. (Mark Bittman Monday, January 28, 2008) The users of corporate data while traveling lost their laptop which contains important data, at diverse locations like in airports, taxis, hotels and in conferencing ets. This research is about the cost of laptop which is mostly lost due to theft or any other reason. This research is based on the representative samples of 29 organizations including health care represents 14%, services and financial institutions represent 13% that have experience of loss from the laptops theft within 12
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months period. The average cost of laptop loss is $49246 based upon the seven cost components and this cost varies from industry to industry. As this cost is highest for services organizations as compare to retail and manufacturing. However, the cost of stolen laptop depends on the fact that how much faster the companies know about the laptop stolen. As if company recognize it in same day the cost would be less than $9000 but if it takes more than one week, the cost may reached at $116000. Antitheft and data protection solutions are available to secure laptop and also sensitive data in these laptops. Because, the companies have to suffer laptops cost and also the cost of sensitive data. This research also tells that most companies do not include this laptop cost and do not pay any attention to stop this type of costs. Various policies should be made for this problem and these policies must be implemented through training and awareness programs. Due to these policies and programs, employees are require to report about the stolen lap top as soon as possible, so that the cost of lost can be minimized. (Ponemon Institute LLC April 22, 2009) This article contains research about the high prices of the algal hydrogen. Cost of algal hydrogen was increasing rapidly, so the research was conducted to find the reasons of increasing costs. With the help of research it was realized that this problem was due to the high production cost than the estimated cost. There are two reasons for it. The first factor is the cost of the photobioreactor. Because of the shear size of the hydrogen production ponds, the bioreactor cost must be minimized. But it is very hard to estimate the exact cost of reactor. So, the wide range of reactor prices are assumed. The other major factor is the storage required for a stand-alone system. For any intermittent renewable, compression and storage are major factors , whether an algal production system, a solar-thermal production system, or a wind system. Presently conventional high-pressure compression and storage are mature technologies, and cost reduction in these areas may be due to new and advance technology. The current areas of research include truncated antennae mutants, oxygen-tolerant hydrogenases and increased hydrogen production rates. These factors are important to the high priced production of algal hydrogen. The

truncated antennae size is reason of deeper light penetration into the growth ponds and higher hydrogen production rates. In past this research is on old production technique (incident light intensities and an average number of hours of daylight to estimate the hydrogen production). In this one saturation effects and insulation data is used as a hydrogen production material.
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(Amos, Wade A. September 2000) This research indicates the cost analysis of the Fleet cars. The research was conducted to check the cost relation with increasing demand of cars. After research it was realized that most of these fleet cars purchased by public are used for leasing purpose (Business use). The reason behind it was that these fleet cars had better per mile average than the others. Cost factor is mostly checked by the businessmen, so when the leasing firms checked the suitable alternative for there business, they came to an answer of these fleet cars. The other factor involved in high demand of these cars was their low depreciation than the others. Most of the consumed part of these cars was in business. It also can be said that these cars improved the leasing business rapidly because economically these cars was most suitable for business use. After 2nd world war the share of these cars increased from 2 to 40 percent that was a great achievement for the company. This research explained that high demand of these cars is due to there economically better rate (cost) and the trust of the businessmen on it. (Automotive Fleet, March 1963) This research is basically about the cost analysis of physician assistants (Pas) in primary care. This study examines the cost associated with employing PAs from the employer's point of view. In the analysis data provided was about episode, patient chacteristics, health, status, diagnosis treatment; referrals; medication, imaging laboratory studies, and return visits in every medical condition managed by PAs, the total episode cost was less than a similar episode managed by a physician, regardless of patient age, gender, health status, and department. Some of the employers of the PAs think that they are cost-effective than the physicians for them. Some costeffectiveness can harm if a PA practices medicine differently from a physician. Many of the physicians also take part in this research, and they also realize that if the PAs avoid the different practices from the physicians, then they are cost-effective for the employers. (Hooker, Roderick S. November 1, 2002) This article summarizes research on total North American roadway transportation costs, including non-market environmental and social costs. Researcher categorized total transportation in twenty different types. The results indicate that automobile use is significantly underpriced, resulting in overconsumption and inefficient use of resources. Motor vehicle use is significantly underpriced in North America. Driving imposes external economic, environmental, and social
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costs, and many of the internal costs of driving are fixed. Average vehicle costs per mile decline with increased use, so vehicle owners have an incentive to maximize driving to get their moneys worth, and those who drive less than average subsidize those who drive more. Most transport improvements simply increase travel speeds and capacity, marginally reducing costs. The existence of significant externalities implies that a major portion of transport activities result in net losses, just as businesses lose money if they sell products below their total costs. Current growth in personal and freight travel may result more from perverse pricing incentives than from net benefits. Underpriced transport increases, overall transportation costs, automobile dependency, environmental impacts. At one time, under pricing may have provided significant external benefits due to economies of scale by reducing average roadway and industrial development costs, but the external marginal benefits are decreasing. Under pricing is inequitable. Wealthy households drive significantly more than poor households, thereby capturing greater benefits and imposing greater external costs. (Todd Litman, 29 November 1999) This research is about cost analysis of cotton production and processing by different companies in Pakistan. For the cost analysis Multan and Bahawalpur regions were selected as study area. In the cost the commission agent plays very important role. They receive commission step by step by different way and raise the cost. The commission agent receive commi9sion from the spinner @35 paisa per Rs. 100. In oil mills the agent receives @35 paisa per Rs. 100. In oil mills the agent receives @35 paisa per Rs. 100 from the oil mills and ginners. The ghee also sold through commission agent and agent receives commission @50 paisa per Rs. 100.The seed cake to merchants through beopari/agent. Here commission agent receives @85 paisa pr Rs.100. In Pakistan the agricultural credit system is very though and credit rate is very high. And machinery and new technology cost is very high so the farmer not use the new technology .Du to these causes the cost remains high. (Muhammad Bashir Khan, 2011) The USA paper & paper board industry had experienced a significant structural change since from last 25 years including reduction in number of mills, low rate of growth unemployment and market share had reduced due to foreign competition .Due to this it become too much difficult for industry to compete in global environment because industry share run operating cost has
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increased consistently an had discrete impact on long run average cost. Our findings indicate that the industry was operating consistently in competition &generate slightly increasing return as similar to Berstin (1992). However industry tries to control the prices and capacity in the mids of 1980 but its effort was worthwhile and as a result economic condition of industry starts to decline. As between 1975-2002 industry average cost of capital was 11% but the rate of return was only 6.7%. The major cause of this decline was the increase in the prices of energy during and after the oil crises in 1970. This condition remain same till now as the prices of oil has increased to $60 a barrel in 2007 to $140 a barrel in 2008 .Globalization also effect the cost structure of paper industry as due to globalization competition has increased. (Patrick McCarthy, July 2008) This research is made to calculate the damages occur due to computer security incidents. According to researcher with a little preparation, some policies and procedures in place, fairly accurate damages can not be estimated but rather straight forward. A model named I-CampII is identified that provides a basic cost estimate mechanism. While this is not a comprehensive measure, it is certainly sufficient to gauge the direct costs of lost labor and productivity, which would certainly provide a tangible starting point for estimating the overall costs of an incident. Damage estimates are one of the first things law enforcement, requires in order prioritizing their response to computer crime. And accurate damage estimates are necessary to ensure that appropriate penalties are levied for these crimes. Without them, the whole legal process is negatively affected and justice is not properly served. By making this a regular part of incident handling, a better result is obtained all around. Leaving law enforcement aside, if incident cost estimation and tracking were required within all institutions, public and private, the sorely needed data on total security incident costs and trends would be there, and the benefits of investment in prevention would create better result. As companies will get awareness about computer crime losses, this problem may correct itself because insurance companies or the government demand it about its awareness and measures to prevent it. (David A. Dietrich, 11 Jun 2002)

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Questionnaire analysis:
Analysis of questions asked by the finance department of MEFCO FAN is give below. For the purpose of analysis following variables have been selected. Strongly agree Agree Neutral Disagree Strongly disagree 5 4 3 2 1

1-Mefco Fan Company provides branded quality products. Frequency Table Responses Frequency
5 4 2 5 4 1

Pie Chart

SA A N D SD

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Average Table
Averages Mean Mode Standard deviation Answers 4.3 5 1.16

In this question average of the respondents are giving answers 3 which shows that average of the respondents are neutral. Standard deviation is 0.94; it shows that variation is from disagree to agree. Mode of the question shows that mostly respondents are strongly agree as mode is 5. 2-Mefco Fan Company provides quality products to its customers than that of Pak fan. Frequency Table Responses Frequency 4 3 2 1 3 5 1 1

Pie Chart

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Q2
SA A N D

Average Table
Averages Mean Mode Standard deviation Answers 3 3 0.94

In this question average of the respondents are giving answers 3 which shows that average of the respondents are neutral. Standard deviation is 0.94; it shows that variation is from disagree to agree. Mode of the question shows that mostly respondents are neither agrees nor disagrees but they are neutral as mode is 3. 3-It provides variety (pedestal, ceiling, exhaust) of products than that of Pak Fan Company. Frequency Table Responses Frequency 5 4 3 2 2 5 2 1 Pie Chart
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Q3
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 3.33 4 1.44

Average of the responses shows that respondents are neutral in the answer of this question. Standard deviation is 1.44 so the variation in the answer is from disagree to strongly agree. Mode of the question shows that mostly respondents are agree as mode is 4. 4-Mefco Fan Companys cost is greater than Pak fan. Frequency Table Responses Frequency 5 4 2 1 1 5 2 2 Pie chart

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Q4
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 4 4 1.13

In this question average of the respondents are giving answer 4 which shows that average of the respondents are agree. Standard deviation is 1.13; it shows that variation is from neutral to strongly agree. 5-Mefco Fan charges reasonable price from their customers. Frequency Table Responses Frequency 5 4 3 1 2 6 1 1

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Pie Chart

Q5
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 2.6 4 1.17

The average of this question 2.6 shows that average of the respondents is neutral. Standard deviation is 1.17 so the variation in the answers is from strongly disagree to agree. Mode of the question shows that mostly respondents are agree as mode is 4. 6-Mefco Fans cost is equal to its estimation. Frequency Table Responses Frequency
5 4 3 2 1 1 1 2 5 1

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Pie Chart

Q6
SA A N D

Average Table
Averages Mean Mode Standard deviation Answers 3.8 2 6.3

Average of the responses shows that the respondents are agree to this question because the average was 3.8 and as the standard deviation is 0.63 it means that variation in the answers is from neutral to agree. As mode is 2 which show that mostly respondents are not agree with this question. 7-If Mefco Fan Company will produces in bulk than their production cost can be reduced. Frequency Table Responses Frequency
5 4 3 1 6 3

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Pie Chart

Q7
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 3.6 4 0.69

In this question average of the respondents are giving answer 3.6 which shows that average of the respondents are agree. Standard deviation is 0.69; it shows that variation is from neutral to agree. Mode of the question shows that mostly respondents are agree as mode is 4. 8-The cost of different varieties of Mefco Fan Company is different from Pak Fan Company. Frequency Table Responses Frequency
4 3 2 7 2 1

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Pie Chart

Q8
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 2.7 4 1.15

The average of this question 2.7 shows that average of the respondents is neutral. Standard deviation is 1.15 so the variation in the answers is from disagree to agree. As mode is 4 which show that mostly respondents are agree. 9-Mefco Fans produces same quantity to the Pak Fan. Frequency Table Responses Frequency 4 3 2 1 4 2 2 2

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Pie Chart

Q9
SA A N D SD

Average Table
Averages Mean Mode Standard deviation 1.34 Answers 3.4

Average of the responses shows that the respondents are neutral to this question because the average was 3.4 and as the standard deviation is 1.34 it means that variation in the answers is from disagree to strongly agree. As mode is 4 which show that mostly respondents are agree with this question. 10-If the costs of Mefco Fan Company will reduce than its demand of products will increase. Frequency Table Responses Frequency
5 4 3 2 2 4 1 2 Page 20 of 33

1
Pie chart

Q10
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 4.1 4 .099

In this question average of the respondents are giving answer 4.1 which shows that average of the respondents are agree. Standard deviation is 0.99; it shows that variation is from neutral to strongly agree. As mode is 4 which show that mostly respondents are agree with this question. 11-If employee become more efficient by providing training than wastage of raw material can be reduced. Frequency Table Responses Frequency 5 4 3 2 4 4 1 1

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Pie Chart

Q11
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 4 5,4 1.05

The average of this question 4 shows that average of the respondents is agreed. Standard deviation is 1.05 so the variation in the answers is from neutral to strongly agree. As mode is 5, 4 which show that mostly respondents agree and strongly agree with this question. 12-Reduction in wastage will increase the total production which can reduce the unit cost. Frequency Table Responses Frequency 5 4 3 2 4 3 2 1

Pie Chart
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Q12
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 3.7 5 .82

Average of the responses shows that the respondents are agree to this question because the average was 3.7 and as the standard deviation is 0.82 it means that variation in the answers is from 3.14 to 5 i.e. respondents vary from neutral to strongly agree. Mode of the question shows that mostly respondents are strongly agree as mode is 5. 13-The cost of Mefco Fans products are affordable to its customers. Frequency Table Responses Frequency 5 4 3 2 1 6 2 1

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Pie Chart

Q13
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 3.2 4 0.91

In this question average of the respondents are giving answers 3.2 which shows that average of the respondents are neutral. Standard deviation is 0.91; it shows that variation is from disagreeing to agree. Mode of the question shows that mostly respondents are agree as mode is 4. 14-Comparison with Pak Fan will force the Mefco Fan to reduce its cost. Frequency Table Responses Frequency
4 3 2 5 2 3

Pie Chart

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Q14
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 3.9 4 1.19

The average of this question 3.9 shows that average of the respondents is agreed. Standard deviation is 1.19 so the variation in the answers is from neutral to strongly agree. Mode of the question shows that mostly respondents are agree as mode is 4. 15-The Pak Fan is getting higher price of his products in market due to strong brand positioning and large market share. Frequency Table Responses Frequency 5 4 3 1 3 5 1 1
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Pie Chart

Q15
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 3.4 4 1.07

Average of the responses shows that the respondents are neutral to this question because the average was 3.4 and as the standard deviation is 1.07 it means that variation in the answers is from disagree to agree. Mode of the question shows that mostly respondents are agree as mode is 4. 16-Is the Pak Fan purchase raw material in out season which create shortage for other companies including Mefco Fan. Frequency Table Responses Frequency 5 4 3 1 5 1
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3 Pie Chart

Q16
SA A N D SD

Average Table
Averages Mean Mode Standard deviation Answers 3.4 4 1.07

Average of the responses shows that the respondents are neutral to this question because the average was 3.4 and as the standard deviation is 1.07 it means that variation in the answers is from disagree to agree. Mode of the question shows that mostly respondents are agree as mode is 4. 17- Has the Mefco fan any competitive edge on Pak Fan in the form of products? From analysis of information collected, we concluded that Mefco Company has no competitive edge on Pak Fan because there are many flaws in the management, techniques and procedures of Mefco Company. 18-What efforts are being made by Mefco Fan to improve its costing system? Lot of efforts are being made by Mefco Fan to reduce it per unit cost and improve its costing procedure. This company is now providing training to its employees and also using different
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techniques to reduce wastage. Workshops are arranging in Gujrat Fan industry under Gujrat Chamber of Commerce. These workshops will provide training to employees.

Conclusion:
After analysis the information collected through research. We have conclude that Mefco fans par unit cost is greater than that Pak fan. The reason of higher cost of Mefco fan is the bulk purchase of raw material by Pak fan.This bulk purchase creates shortage of raw material for other companies including Mefco fan. The brand positioning of Pak fan is strong than Mefco fan. Mefco fan costing procedureis not good but the cost procedure and techniques are so fgood of Pak fan.Labour of Mefco fan are not qualified and trained due to which there is a problem of wastage of raw materialwhich cause to increase the cost of Mefco fan. The pedestal quality of Mefco fan is very low as compared to Pak fan.The cost of Pak fan remain low due to mass production.Pak fan is charging high price in market for its product due to strong brand positioning and effective market complain.

Suggestion:
Mefco fan company should buy raw material in outseason in large quantity. Mefco fan company should provide training to worker t for reduce wasting. Mefco fan company should hire qualified person in finance department. Mefco fan company should also change its costing procedure and techiniques.
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 Mefco fan company should improve its marketing strategies to improve its brand positioning The mefco fan should use production concept.

References:

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Appendix:

Product Cost Analysis

We are the students of M.B.A 2nd semester. We are conducting a research on Mefco Fan Company to make analyses of their cost of production as how they can control or minimize their production cost. In order to reach the conclusion we need your suggestions here and your suggestions will remain confidential. Name Gender Address Profession : : : : .. .. .. .. ..
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Contact No. :

1-Mefco Fan Company provides branded quality products. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

2-Mefco Fan Company provides quality products to its customers than that of Pak fan. a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly disagree

3-It provides variety (pedestal, ceiling, exhaust) of products than that of Pak Fan Company. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

4-Mefco Fan Companys cost is greater than Pak fan. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

5-Mefco Fan charges reasonable price from their customers. a) Strongly agree b) Agree c) Neutral d) Disagree e)Strongly disagree

6-Mefco Fans cost is equal to its estimation. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

7-If Mefco Fan Company will produces in bulk than their production cost can be reduced. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

8-The cost of different varieties of Mefco Fan Company is different from Pak Fan Company. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

9-Mefco Fans produces same quantity to the Pak Fan. a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly disagree

10-If the costs of Mefco Fan Company will reduce than its demand of products will increase. a) Strongly agree b) Agree c) Neutral d) Disagree e)Strongly disagree

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11-If employee become more efficient by providing training than wastage of raw material can be reduced. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

12-Reduction in wastage will increase the total production which can reduce the unit cost. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

13-The cost of Mefco Fans products are affordable to its customers. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

14-Comparison with Pak Fan will force the Mefco Fan to reduce its cost. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

15-The Pak Fan is getting higher price of his products in market due to strong brand positioning and large market share. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

16-Is the Pak Fan purchase raw material in out season which create shortage for other companies including Mefco Fan. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

17- Has the Mefco fan any competitive edge on Pak Fan in the form of products?

18-What efforts are being made by Mefco Fan to improve its costing system?

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