A STUDY OF COST EFFECTIVENESS AND IMPACT ON PROFITABILITY AT BHARAT EARTH MOVERS LTD (BEML)

Abstract

Finance is the lifeline of any enterprise. Finance is the technological know-how that depicts the
management, credit score, investments, expenses, assets and liabilities. It is needed to establish an
enterprise, to run it to modernize it to increase or diversify it. It's miles required for getting a spread of
belongings, which can be tangible like machinery, furnishings, factories, homes, places of work or
intangible including emblems, patents, technical expertise and many others. also, finance is imperative to
run a day after day operations of enterprise like shopping for substances, paying payments, salaries,
collecting coins from clients etc. wished at every stage in the life of a business entity. Availability of
adequate finance is very vital for survival and growth of an enterprise.
The paper concentrates on finding out the cost incurred and its effectives at BEML. As the company meets
various direct and indirect cost to run a day after day operations of enterprise like shopping for
substances, paying payments, salaries, collecting coins from clients etc. wished at every stage in the life
of a business entity. Availability of adequate finance is very vital for survival and growth of an enterprise.
The purpose of the study is to find out the profitability of BEML by using various tools like ratio analysis,
CVP, BES, Margin of safety, Contribution margin, Profit volume ratio, Job Costing, The study concludes
that the application of cost- volume profit analysis and job-costing techniques in decision-making process
to a very large extent enhance cost efficiency of BEML. The company is increasing day-to-day activities
to meet the challenges within the market. From the analysis of cost reduction strategies and techniques at
BEML ltd, it is obvious that the price reduction strategies and techniques is satisfactory.