Cost Structure Analysis of Selected Oil and Natural Gas Companies in India

Abstract

Cost benefit analysis is a crucial issue for corporate world today. Analysis of cost is necessary for comparison over the years for cost control and cost planning. The present study attempts to analyse the cost structure of the selected oil and natural gas companies in India. To analyse the cost structure of each companies mean, standard deviation, covariance and ANNOVA have been applied.  Some of the major cost components are taken for this research, like Raw materials consumed, power and fuel and Salaries and wages. Each cost component has been expressed as a percentage of Net sales. The study reveals that the cost structure of sample companies was not uniform and varies company to company. The result shows the difference in the cost component to net sales in the selected oil and natural companies were significant.