Introduction
The Dabur Company is an Indian industry leader in the health and beauty sector. The firm is established in over sixty countries and majors on six divisions of production (One of the Best Ayurvedic Companies in India | Dabur). Dabur, which has been around since 1884, is an industry pioneer when it comes to health and wellness (Bharathi and Mayya). Traditional knowledge is used to create products that are all-natural, risk-free, and very effective. This paper analyzes Darbur’s the company’s profile, vision, and mission statement, and the product mix. The current thesis of the work is that Dabur is an effective and well-managed organization, capable of presenting value to the customer and satisfying the needs of its stakeholders.
Health care, personal care, home care, food and drinks, and specialty products are just some of Dabur Co.’s six divisions. The company’s mission is to provide affordable, healthy products. Its products and services are based on traditional knowledge and natural ingredients. It is also committed to giving customers a great experience and meeting their needs. The company provides consumers with quality, safe, and effective products and services. Dabur is also committed to satisfying customers’ needs and wants. Dabur Co. is committed to responsible business practices.
Allocation of Overhead Costs
During production, Dabur Co. uses the direct, step-down, and reciprocal techniques to divide up its overhead expenses. Assigning manufacturing overhead costs is a natural part of the manufacturing process. When manufacturing overhead costs are low and the activities that generate them can be clearly linked to specific products or services, this approach is frequently adopted.
Assigning costs to departments and then allocating those costs to the products or services linked with those departments is what the step-down approach of allocating manufacturing overhead costs is all about. When there are a number of different support departments involved in the production process and the activities that result in the overhead expenses cannot be directly linked to individual products or services, this strategy is typically employed.
Assigning expenses to departments using a reciprocal connection is the typical approach to allocate manufacturing overhead costs. When there are a number of different support departments involved in the production process and the activities that result in the overhead expenses cannot be directly linked to individual products or services, this strategy is typically employed. Dabur Co. uses varied approaches to allocate manufacturing overhead costs to guarantee that expenses are correctly assigned to the products and services to which they pertain, including direct and reciprocal methods.
Formats of Income Statements
Dabur Co. uses both absorption and variable costing methods for its income statements. The absorption costing method is used when inventory costs are included in the goods sold. This method comprises fixed and variable expenses in goods sold and is most commonly used for external financial reporting purposes (Tuovila). The variable costing method is used when inventory costs are excluded from the cost of goods sold. This method only includes variable costs in goods sold and is most commonly used for internal management decisions. Dabur Co. uses absorption and variable costing methods to ensure accurate and informative financial reports are presented to stakeholders.
CVP Analysis
Dabur Co. uses CVP (Cost-Volume-Profit) analysis to plan for its variable and fixed costs. It is a necessary step in deciding how to sell and market goods for a profit. This type of analysis helps the company determine the optimal pricing strategy and the amount of output that should be produced to maximize profit. CVP analysis is an essential tool for Dabur Co. because it helps the company plan for its variable and fixed costs to maximize profit.
Computer-Based Financial Planning Models
Dabur Co. conducts sensitivity analysis with the help of financial planning models built in a computer program. This study examines the impact that shifting key factors have on the company’s bottom line. The Balanced Scorecard is just one example of the models used to assess the company’s progress and pinpoint problem areas. The organization can use the results of this type of analysis to pinpoint its strengths and weaknesses and formulate plans to improve (Corporate Finance Institute). To further examine how actual results compare to projections, Dabur Co. also does variance analysis. With this information, the business can figure out how to cut expenses and boost revenue. Last but not least, the organization employs performance reports to monitor progress and spot problem areas. Dabur Co. employs these methods to increase the likelihood that it will succeed in the financial
Process Costing Flowchart
Dabur Co. uses a process costing flowchart to track its manufacturing costs. This flowchart follows the costs associated with each stage of the manufacturing process, including the materials, labor, overhead, and other associated costs. The flowchart begins with the raw materials and follows the manufacturing process to the finished product (“Flow of Costs (Process Costing) | Accounting for Managers”). The flowchart also identifies the various departments associated with the production process. This information is used to calculate the total cost of the product, which is used for internal and external financial reporting. The process costing flowchart is essential for Dabur Co. because it helps track and analyze its manufacturing costs.
Budgets and its Support Schedule
Dabur Co. uses budgeting and supporting schedules to plan and manage its finances. The company creates detailed budgets that include both income and expenses. These budgets are used to prepare for the company’s financial goals. The company also makes supporting schedules that contain more detailed information about the company’s income and expenses. These schedules provide insight into the company’s financial performance and are used to identify areas of improvement. Budgeting and its supporting schedules are essential tools for Dabur Co. because they help the company plan for its financial goals and ensure that it can meet them.
Business practices to meet the Sustainable Development Goals SDGs
Dabur Co. has adopted a sustainability policy that outlines its commitment to environmental protection and social responsibility. The company also has implemented a zero-waste approach that helps reduce waste and pollution. Additionally, the company has implemented various energy efficiency measures to reduce its energy consumption and carbon emissions. Finally, the company is committed to ethical sourcing and responsible production and has adopted various measures to ensure that its products are sourced and produced responsibly. These business practices help Dabur Co. meet its SDG commitments and contribute to a more sustainable future.
Sustainability reporting
Dabur Co. has a comprehensive sustainability reporting program. The company’s sustainability report provides detailed information about its environmental, social, and governance performance. The report includes information about the company’s carbon emissions, energy efficiency, waste management, ethical sourcing, and other sustainability initiatives. The report also provides information about the company’s progress toward its sustainability goals and strategies for further improving its sustainability performance. A sustainability report is an essential tool for Dabur Co. because it provides stakeholders with a comprehensive overview of its sustainability performance.
Kaizen Costing [Continuous Improvement]
Dabur Co. uses kaizen costing to improve its products and services. Kaizen costing is a method of continuous improvement that focuses on reducing costs while enhancing quality. The company uses kaizen costing to identify waste and inefficiency areas and develop strategies for eliminating those areas. Kaizen costing helps the company identify cost-reduction opportunities and develop strategies for improving quality and efficiency. This method is an essential tool for Dabur Co. because it allows the company reduce costs and improve quality.
Lean Manufacturing
Lean manufacturing is an approach to production that seeks to maximize efficiency by minimizing waste. Lean manufacturing aims to maximize output while minimizing waste. With the use of lean manufacturing methods, the company has been able to cut expenses while raising production standards. Standardized work, just-in-time production, continuous improvement, and visual management are all examples of such methods. Dabur Co. (One of the Best Ayurvedic Companies in India | Dabur) has adopted lean manufacturing practices to increase productivity while decreasing expenses. A skeleton production system developed by the company has led to major cost reductions and quality enhancements. The company has also reduced costs and raised quality standards by implementing a lean manufacturing strategy of continuous improvement. Dabur Co. has reduced production costs and improved product quality thanks to the implementation of a lean manufacturing system.
Conclusion
Dabur Co. is a leading global health and wellness company based in India. The company uses various methods for allocating its manufacturing overhead costs and planning for its variable and fixed costs. Dabur Co. also uses computer-based financial planning models for sensitivity analysis and performance management and has adopted various business practices to meet its sustainability goals. Additionally, the company has implemented a comprehensive sustainability reporting program and has adopted kaizen costing and lean manufacturing techniques to reduce costs and improve quality. Overall, Dabur Co. is a successful and responsible company committed to providing quality, safe and effective products and services that address the needs of its consumers.
Works Cited
“Flow of Costs (Process Costing) | Accounting for Managers.” Lumen Learning – Simple Book Production, Web.
Bharathi, and Suresh Ramana Mayya. “Performance Evaluation of Dabur India Ltd through Profitability Ratio Analysis: A Case Study.” International Journal of Case Studies in Business, IT, and Education, 2022, pp. 387–400.
Corporate Finance Institute. “Balanced Scorecard.” Corporate Finance Institute, Web.
One of the Best Ayurvedic Companies in India | Dabur, Web.
Tuovila, Alicia. “Absorption Costing Explained, With Pros and Cons and Example.” Investopedia, Web.