THE IMPACT OF MATERIAL'S PRICE HIKE ON THE PRODUCTION COST: A CASE STUDY OF SUMMIT COMMUNICATIONS LTD.

Abstract

This research paper examines the impact of material price hikes on the production cost of Summit Communications Ltd, a telecommunications company in Bangladesh. The study aims to analyze the breakdown of production costs, describe the network-building operations, and suggest recommendations based on the findings. The paper includes historical data and trends in material prices and production costs that can aid in budget creation, cost analysis, and audit purposes. The results show that manufacturing has become more expensive over time as a result of rising labor expenses and the cost of purchasing equipment. Materials prices also fluctuate due to the pandemic, going up significantly in 2018, down significantly in 2019, and then back up in 2021. The study looks at the particular products that underwent price hikes, such as fuel, cement, sand, stone, and rod, as well as how the company handled these difficulties. The findings reveal that Summit Communications Ltd. implemented several strategies to mitigate the impact of rising material costs on production, including cost-cutting measures, renegotiating contracts with suppliers, and exploring alternative materials. The company's financial performance was negatively impacted by the material price hikes, but it was able to maintain its position in the market. The study offers valuable insights into how companies can navigate the challenges of rising material costs and maintain their position in the market.