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The term "cost" is synonymously used for the

term "expense", which refers to sacrifice.
According to Committee of cost concepts-
"Cost is foregoing, measured in monetary
terms, incurred or potentially to be incurred to
achieve a specific objective."
COSTING SYSTEM IN HAL

The system of cost accounting followed in

HAL is "Batch Costing" which is a variation
of job costing and is mainly designed to suit
the work carried out in HAL. Some divisions
of HAL have also work order schemes suitable
for component costing.
In BATCH COSTING method, all the
components, minor assemblies required for the
aircraft equipment are manufactured on batch
order. Jobs are carried out in batches. The
cost of labour and material are booked on
batch work only.
In batch costing method, cost of aircraft
engine and its equipments, sub-assemblies
related to an aircraft engine, its equipment in
a completed batch is determined by dividing
the total cost recorded on batch work order
by the number of units produced in the batch.
 ABOUT HAL

HAL was established as w

  

in Bangalore in 1940 by Walchand Hirachand
to produce military aircraft for the Royal
Indian Air Force but it came into existence on
1st October 1964. The principal activities of
HAL involve manufacturing aircraft,
aerospace, navigation, and instruments for
communication purposes
CONTD«

HAL built the first military aircraft in South

Asia and is currently involved in the design,
fabrication and assembly of aircraft, jet
engines, helicopters and their components and
spares. It has several facilities throughout
India including Nasik, Korwa, Kanpur,
Koraput, Lucknow, and Hyderabad.
FINANCE DEPARTMENT IN HAL

The Finance Department occupies a very

important position in any organisation as it has
a role to play in almost all the activities right
from conceptualisation of a project till its
successful implementation from smooth
running and thereafter.
It is the department having large number of
customers inside as well outside the
organisation.
OBJECTIVES

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 DIVISIONS OF FINANCE
DEPARTMENT
± BILLS PAYABLE
± FINANCE
± PAYROLL
± CASH OFFICE
± BILLS RECEIVABLE
± COST ACCOUNTS
± MATERIAL ACCOUNTS
CONTD«

± BOOK KEEPING
± TIME OFFICE
± PROVIDENT FUND
± BUDGET SECTION
 COST CONTROL

Cost control can be defined as O



   O O    

    O
 

O 

  


O O
  . It aims at accomplishing
conformity between actual result and
standards or budgets.
COST CONTROL TECHNIQUES

The cost control techniques are used to

maintain cost efficiency. The cost control
techniques, which are widely used, are as
follows:
± Standard costing
± Variance analysis
± Budgetary control
 SUGGESTIONS

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CONTD«

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 CONCLUSION

HAL is one of the largest PSU under the

department of defense production, GOI and is
a ³NAVRATNA´ company ranked 34th in the
list of world¶s top 100 defense companies.
HAL with its wide spectrum of expertise in
design, development and manufacture of
aircrafts, helicopters, engines, accessories and
avionics has emerged as major aeronautical
complex in Asia.
CONTD«

As herein, the projects and items need huge

investments than any other organization and
confidential factor is also there too much
extent but as much information is extracted
shows that cost control is being performed
quite good that¶s why it is in so much profit.