Implementation of Material Flow Cost Accounting into a Bearing Manufacturing Company in India

By : Alok Shah, David Jacob, Deep Desai, Dhruvrajsinh Atodaria, Bhavesh Modi

Page No: 449-459

Abstract
This article aims to combine the concept of Material Flow Cost Accounting (MFCA) into a bearing manufacturing company. Material Flow Cost Accounting, as described by ISO-14051 norms, is an Environmental Management Accounting (EMA)tool that seeks to improve a company’s productivity while reducing its impact on the environment. The concept was implemented in the following manner by: (a) establishing quantity centres, (b) quantifyingmaterial flow, (c) depicting data on the MFCA flowchart sheet, and (d) proposing necessary changes required for prophylactic measures. The implementation revealed the negative cost of 3.58 percent and the suggestions were forwarded to the company.

Authors :
Alok Shah : Student, Mechanical Department, ShriS’ad Vidya Mandal Institute of Technology, Bharuch
David Jacob : Student, Mechanical Department, ShriS’ad Vidya Mandal Institute of Technology, Bharuch
Deep Desai : Student, Mechanical Department, ShriS’ad Vidya Mandal Institute of Technology, Bharuch
Dhruvrajsinh Atodaria : Student, Mechanical Department, ShriS’ad Vidya Mandal Institute of Technology, Bharuch
Bhavesh Modi : Assistant Professor, Mechanical Department, ShriS’ad Vidya Mandal Institute of Technology, Bharuch.