A comparative study of the different costing
techniques and their application in the
pharmaceutical companies
Author:
Muhammad ALEEM, Alamdar Hussain KHAN, Wasim HAMAD
JEL:
M41.
DOI:
10.20869/AUDITF/2016/143/1253
Keywords:
Pharmaceutical industry, costing system,
marginal costing, ABC costing, Punjab.
Abstract:
After its induction in the 19th century, the
pharmaceutical industry covered a long way and now it
became one of the most successful and influential
industries in the world, with both praise and controversy
on its part. The current study is performed on the
pharmaceutical firms working in the Punjab (Pakistan).
Like the other profit-driven organizations, the main aim
of the pharmaceutical firms is to earn the maximum
profit. The profitability also depends on the costing
system. The current paper evaluates the costing
systems, the level of satisfaction regarding the costing
system, the major problems faced during the costing
process and the best method of costing in the
pharmaceutical sector. The questionnaire was designed
for the collection of data from 130 pharmaceutical
companies working in the Punjab. For the data analysis,
the descriptive statistics and the graphical method were
used. The significant result of the study is that most of
the organizations used the marginal costing and many
managers are satisfied with the costing system which
they are using.
Abstract(171KB)
Article(491KB)