TITLE OF THE PROJECT : A STUDY ON COST

ANALYSIS AND CONTROL ON HYUNDAI

MOTOR COMPANY
NAME : GOSHIKE SUMITHRA

ROLL NO : 1520-23-672-066

DEPARTMENT : MBA

YEAR : II

SEMESTER : I

NAME OF THE INSTITUTION : KESHAV MEMORIAL INSTITUTE OF

MANAGEMENT
OBJECTIVES
• To analyse the material framework of cost analysis and control.

• To describe the profit of the organization as a backdrop for undertaking a

study of cost benefit analysis.

• To analyse the cost estimate and the revenue expenditure and revenue
receipts.

• To analyse the variation of the actual from the cost estimate.

REVIEW OF LITERATURE
1. A study on impact of target costing on profitability of selected automobile companies in India, 2023.
Abstract: Manufacturing firms must remain focused on adopting technology and processes rather
than observing competition between rival firms. Better cost accounting practices must be adopted
by businesses in order to reduce the cost of goods and services and to develop a successful
automobile industry in India. This study looks into the Target Costing (TC) implementation process in
Indian automobile industry. Target costing was used as a dependent variable in this study, whereas
profitability, net tangible assets (NTA), EPS, and return on assets were used as independent
variables. The study used a convenience sample of the top five Indian automobile companies listed
on the BSE, and panel data from the years 2012-13 to 2021-22 was used. The descriptive statistical
analysis and method of Pearson’s Correlation was used to analyze the data. According to Pearson’s
correlation results, there is a negative association between target costs and profitability.
REVIEW OF LITERATURE
2. Cost Management for Pricing by Tanaka Technique (Case: An Experience from Automobile Industry),
2022.
Abstract: One of the most pressing issues in today's world is minimizing production costs. Similarly,
the cost management of the product to be produced occurs during the design stage; that is, the
finished price of the product is determined and the design is completed with the goal of reaching
this price. Given the importance and position of the automobile industry, the goal of this research is
to be able to perform cost management in this industry. The "Tanaka" method was used in this
descriptive-analytical model to provide an innovative model for cost management during the design
phase of the automobile engine. Tanaka is a technique that exhibits the cost allocation deviation
from what it should be based on what is currently happening. The research findings revealed that
two pieces are worth more than their value, while the quality of several pieces has not been paid
according to their value, and they cost less than their value.
REVIEW OF LITERATURE
3. Comparative Analysis of the Life-Cycle Cost of Robot Substitution: A Case of Automobile Welding
Production in China, 2021.
Abstract: Within the context of the large-scale application of industrial robots, methods of analyzing the
life-cycle cost (LCC) of industrial robot production have shown considerable developments, but there
remains a lack of methods that allow for the examination of robot substitution. Taking inspiration from the
symmetry philosophy in manufacturing systems engineering, this article further establishes a comparative
LCC analysis model to compare the LCC of the industrial robot production with traditional production at
the same time. This model introduces intangible costs (covering idle loss, efficiency loss and defect loss) to
supplement the actual costs and comprehensively uses various methods for cost allocation and variable
estimation to conduct total cost and the cost efficiency analysis, together with hierarchical decomposition
and dynamic comparison. To demonstrate the model, an investigation of a Chinese automobile
manufacturer is provided to compare the LCC of welding robot production with that of manual welding
production; methods of case analysis and simulation are combined, and a thorough comparison is done
with related existing works to show the validity of this framework. In accordance with this study, a simple
template is developed to support the decision-making analysis of the application and cost management of
industrial robots. In addition, the case analysis and simulations can provide references for enterprises in
emerging markets in relation to robot substitution.
REVIEW OF LITERATURE
4. Total Cost of Ownership Analysis of the Impact of Vehicle Usage on the Economic Viability of Electric Vehicles in
India, 2020.
Abstract: The road transport sector in India is on the cusp of a transition to battery electric vehicles (BEVs) from
internal combustion engines (ICEs). Government of India (GoI) has announced several policy measures to push
the adoption of electric vehicles (EVs). However, EVs involve a high capital cost but lower operating costs.
Therefore, the economics of EVs vis-à-vis ICE vehicles depends on the extent of their daily use. The daily use, in
turn, can vary significantly from context to context. In this paper, a model to compare the total cost of ownership
(TCO) of an EV with different fuel variants (petrol, diesel, and compressed natural gas [CNG]) of their ICE
counterparts is presented. It is found that, on an average, the TCO per km of electric two-wheelers (e-2Ws) and
electric three-wheelers (e-3Ws) is less than their ICE counterparts at the typical average daily usage of the
vehicles in Indian cities. In the case of hatchback and sedan cars, the TCO per km of electric cars (e-cars) is higher
than their ICE counterparts. The TCO per km of electric bus (e-bus) is higher than diesel and CNG buses because
of high initial purchase cost. Policymakers need to explore innovative business models and strategy for high
vehicle utilization to improve the economic viability of EVs. Efficient planning of charging infrastructure and fast
charging options will further help in accelerating the adoption of EVs in India.
REVIEW OF LITERATURE
5. Application of target costing and performance analysis : evidence from Indian automobile industry, 2020.
Abstract: The manufacturing companies must keep attention over challenges and for the moment of adopt technology
and practices instead of observation of competition amongst competitor companies. To create automobile business
successful in India, companies are essential to adopt better cost accounting techniques to minimize cost of products and
service costs. This research investigates the application procedure of Target Costing (TC) in automobile companies in
India. This study employed Target Costing as a dependent variable while Profitability; Growth; Net Tangibility Assets
(NTA); EPS and Firm Size are independent variables. The study adopted convenience sample of top ten automobile
companies listed on BSE of India and panel data has covered from 2014-15 to 2018-19 years. Data was analyzed through
using statistical techniques of descriptive statistical analysis, Pearson’s Correlation, Simple Regression and Multiple
Regression analysis and using the SPSS. The result of the target costing impact on profitability has reported by Pearson’s
correlation result shown a negative relationship. Similarly, Target costing impact on Return on sales examined by simple
regression analysis and revealed that there is positive correlation. Finally, Target costing impact on financial performance
examined by multiple regression results revealed that there is positive correlation with Revenue from Operation;
Profitability; Return on Sales (ROS) and Growth, while negative correlation revealed by Margin from Operation; ROA; Net
Tangibility Assets(NTA); EPS and Firm Size. Target Costing has been identified as a popular technique to accomplish
automobile company’s goals. Target costing consist exclusive approach to decide target price for the product and
services. Target Costing ensure that new product price would be competitive in the market with substantial quality of
products and services. This research investigates the application procedure of Target Costing (TC) and examined financial
performance of Indian Automobile companies.
DATA COLLECTION INFORMATION

• SECONDARY DATA
- Google
- Company website
- Annual reports of Hyundai Motors Company
- Economic reviews
BRIEF WRITEUP OF THE PROGRESS
• Categorizing costs into direct material cost, direct labor cost, manufacturing cost.

• Identifying fixed, variable cost and mixed cost and how they change with production
volume.

• Analyzing manufacturing processes to identify and eliminate unnecessary costs while

maintaining quality and functionality.
THANK YOU