A Study of Cost Structure of Indian FMCG Industry

Abstract

This paper investigates sales and cost structure of F MCG companies of India. The study is based on 10 FMCG companies of FMCG sensex. In the present paper cost structure of FMCG is classified as Raw material cost as percentage of sales, power and fuel cost to sales, employee cost to sales, depreciation cost to sales, indirect tax to sales, financial charges to sales and administrative, selling, distribution and miscellaneous expenses as percentage of sales. An attempt has also been made to analyze sales trend of the units under study. To test hypothesis ANOV A technique has been used in the study. The result of the study indicates that there is a significant difference in the cost structure of FMCG units. The raw materials cost percentage was highest among all the components of the cost