LETTER OF TRANSMITTAL

10 December, 2016

Md. Abdus Salam

Assistant Professor
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

Subject: Submission of the term paper.

Sir,
I would like to inform you that I have completed my internship report on the topic
Importance of Variable Costing for External Reporting. I have collected information from
all available sources in the most realistic and professional way.
In writing this term paper, I have followed the instructions of my organization while at the
same time consulting with my academic supervisor. I have endeavored to the utmost potential
and limited constraints to project the report as reflective as possible. I earnestly hope that this
report will meet your specification. If would be delighted for me to furnish you with any
clarification if required.

Sincerely yours,

_______________________
Abhijit Kumar Saha
MBA Final Year
Class Roll: 8275
NU Registration: 13325114182
Session: 2013-2014
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

1
 CERTIFICATE OF THE SUPERVISOR

This is to certify that, Abhijit Kumar Saha, bearing Class Roll: 8275, NU Registration:
13325114182, Session: 2013-2014, Major in Accounting is a regular student of MBA
Program, Department of Business Administration, Kabi Nazrul Govt. College, Dhaka under
the National University of Bangladesh. He has completed term paper on selected topic at
Department of Accounting under my supervision which is a fulfillment of partial requirement
of obtaining MBA Degree.

I wish his success in all his future endeavors.

_________________________
Md. Abdus Salam
Assistant Professor
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

2
 STUDENTS DECLARATION

I do hereby declare that this term paper Importance of Variable Costing for External
Reporting submitted by me to Kabi Nazrul Govt. College, Dhaka under National University
of Bangladesh for the degree of Master of Business Administration.

I also declare that this paper is original work and prepared for academic purpose which is a
part of MBA final and the paper may not be used in actual field of cost accounting.

___________________________
Abhijit Kumar Saha
MBA Final Year
Class Roll: 8275
NU Registration: 13325114182
Session: 2013-2014
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

3
 ACKNOWLEDGEMENT

The successful accomplishment of the term paper is the outcome of the contribution and
involvement of a number of people, especially those who took the time to share their
thoughtful guidance and suggestions to improve the term paper. There are some special
people who cant go without mention.

First of all, I would like to thank our honorable academic supervisor Md. Abdus Salam,
Assistant Professor, Department of Accounting, Kabi Nazrul Govt. College, Dhaka. I am
thankful for his continuous support, supervisions and suggestions which are much more
helpful for completion of this term paper.

Then I would like to express my gratitude to librarian, my classmates and my group members
those who are provided me a lot of data to complete this term paper properly.

4
 Executive Summary

The term paper on Importance of Variable Costing for External Reporting

has segmented into five chapter. Where I have tried to focus the importance of
variable costing for external reporting of any company. In First chapter has
contained background of the study, origin of the study, rationale of the study,
objectives of the study, methodology of the study, limitations of the study. In
chapter two the study has included relevant literature review from different
books, journals, articles and company analysis. The chapter three has focused
product costing methods applied for decision making by the administration as
contained with product costs, product costs for decision making, estimating
material cost for products, product costs for external reporting, evaluating
product profitability. Chapter four discussed the effectiveness of variable
costing to external reporting. At the end chapter five has focused the major
findings and conclusion of the term paper.

5
 Table of Contents
Chapter Particulars Page No.
Letter of Transmittal I
Certificate of the Supervisor II
Students Declaration III
Acknowledgement III
Executive Summary IV
1.1 Background of the Study 02
1.2 Origin of the Study 02
1.3 Rationale of the Study 02
Chapter One 1.4 Objectives of the Study 03
Introduction 1.5 Methodology of the Study 03
1.6 Limitations of the Study 03
Chapter Two Literature Review 04
3.1 Product Costs 05
3.2 Product Costs for Decision Making 05
3.3 Estimating Material Cost for 05
Chapter Three Products
3.4 Product Costs for External Reporting 07
Product Cost and 3.5 Evaluating Product Profitability 10
Decision Making
Chapter Four 4.1 Effectiveness of Variable Costing to 12
External Reporting
Inventory An
Absorbing
Problem

Chapter Five 5.1 Findings 26

Findings
and Conclusion
5.2 Conclusion 29
References 30

6
Kabi Nazrul Govt. College,
Dhaka

Term Paper
On
Importance of Variable Costing for External
Reporting

Submitted to
Md. Abdus Salam
Assistant Professor
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

Submitted by
Prasenzit Sarker
MBA Final Year
Class Roll: 8276
NU Registration: 13325114250
Session: 2013-2014
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

Date of Submission: __________________________

7
 LETTER OF TRANSMITTAL

10 December, 2016

Md. Abdus Salam

Assistant Professor
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

Subject: Submission of the term paper.

Sir,
I would like to inform you that I have completed my internship report on the topic
Importance of Variable Costing for External Reporting. I have collected information from
all available sources in the most realistic and professional way.
In writing this term paper, I have followed the instructions of my organization while at the
same time consulting with my academic supervisor. I have endeavored to the utmost potential
and limited constraints to project the report as reflective as possible. I earnestly hope that this
report will meet your specification. If would be delighted for me to furnish you with any
clarification if required.

Sincerely yours,

_______________________
Prasenzit Sarker
MBA Final Year
Class Roll: 8276
NU Registration: 13325114250
Session: 2013-2014
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

8
 CERTIFICATE OF THE SUPERVISOR

This is to certify that, Prasenzit Sarker, bearing Class Roll: 8276, NU Registration:
13325114250, Session: 2013-2014, Major in Accounting is a regular student of MBA
Program, Department of Business Administration, Kabi Nazrul Govt. College, Dhaka under
the National University of Bangladesh. He has completed term paper on selected topic at
Department of Accounting under my supervision which is a fulfillment of partial requirement
of obtaining MBA Degree.

I wish his success in all his future endeavors.

_________________________
Md. Abdus Salam
Assistant Professor
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

9
 STUDENTS DECLARATION

I do hereby declare that this term paper Importance of Variable Costing for External
Reporting submitted by me to Kabi Nazrul Govt. College, Dhaka under National University
of Bangladesh for the degree of Master of Business Administration.

I also declare that this paper is original work and prepared for academic purpose which is a
part of MBA final and the paper may not be used in actual field of cost accounting.

___________________________
Prasenzit Sarker
MBA Final Year
Class Roll: 8276
NU Registration: 13325114250
Session: 2013-2014
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

10
 ACKNOWLEDGEMENT

The successful accomplishment of the term paper is the outcome of the contribution and
involvement of a number of people, especially those who took the time to share their
thoughtful guidance and suggestions to improve the term paper. There are some special
people who cant go without mention.

First of all, I would like to thank our honorable academic supervisor Md. Abdus Salam,
Assistant Professor, Department of Accounting, Kabi Nazrul Govt. College, Dhaka. I am
thankful for his continuous support, supervisions and suggestions which are much more
helpful for completion of this term paper.

Then I would like to express my gratitude to librarian, my classmates and my group members
those who are provided me a lot of data to complete this term paper properly.

11
 Executive Summary

The term paper on Importance of Variable Costing for External Reporting

has segmented into five chapter. Where I have tried to focus the importance of
variable costing for external reporting of any company. In First chapter has
contained background of the study, origin of the study, rationale of the study,
objectives of the study, methodology of the study, limitations of the study. In
chapter two the study has included relevant literature review from different
books, journals, articles and company analysis. The chapter three has focused
product costing methods applied for decision making by the administration as
contained with product costs, product costs for decision making, estimating
material cost for products, product costs for external reporting, evaluating
product profitability. Chapter four discussed the effectiveness of variable
costing to external reporting. At the end chapter five has focused the major
findings and conclusion of the term paper.

12
 Table of Contents
Chapter Particulars Page No.
Letter of Transmittal I
Certificate of the Supervisor II
Acknowledgement III
Executive Summary IV
1.1 Background of the Study 02
1.2 Origin of the Study 02
1.3 Rationale of the Study 02
Chapter One 1.4 Objectives of the Study 03
Introduction 1.5 Methodology of the Study 03
1.6 Limitations of the Study 03
Chapter Two Literature Review 04
3.1 Product Costs 05
3.2 Product Costs for Decision Making 05
3.3 Estimating Material Cost for 05
Chapter Three Products
3.4 Product Costs for External Reporting 07
Product Cost and 3.5 Evaluating Product Profitability 10
Decision Making
Chapter Four 4.1 Effectiveness of Variable Costing to 12
External Reporting
Inventory An
Absorbing
Problem

Chapter Five 5.1 Findings 26

Findings
and Conclusion
5.2 Conclusion 29
References 30

13
Kabi Nazrul Govt. College,
Dhaka

Term Paper
On
Importance of Variable Costing for External
Reporting

Submitted to
Md. Abdus Salam
Assistant Professor
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

Submitted by
Abhijit Kumar Saha
MBA Final Year
Class Roll: 8275
NU Registration: 13325114182
Session: 2013-2014
Department of Accounting
Kabi Nazrul Govt. College, Dhaka.

Date of Submission : __________________________

14
15