Cost Sheet Format | CA Inter Costing | May, 2022 (Part 1)
One of the objectives of cost accounting system is ascertainment of cost for a cost object. The cost objects may be a product, service or any cost centre. Ascertainment of cost includes elementwise collection of costs, accumulation of the costs so collected for a certain volume or period and then arrange all these accumulated costs into a sheet to calculate total cost for the cost object. In this chapter, a product or a service will be the cost object for cost calculation and cost ascertainment. A Cost Sheet or Cost Statement is “a document which provides a detailed cost information. In a typical cost sheet, cost information are presented on the basis of functional classification. However, other classification may also be adopted as per the requirements of users of the information.
This concept is relevant for CA Inter Costing exams or CA Intermediary Cost and Management accounting system.
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Costs are divided according to the function for which they have been incurred. The following are the classification of costs based on functions:
(i) Direct Material Cost
(ii) Direct Employee (labour) Cost
(iii) Direct Expenses
(iv) Production/ Manufacturing Overheads
(v) Administration Overheads
(vi) Selling Overheads
(vii) Distribution Overheads
(viii) Research and Development costs etc.
The costs as classified on the basis of functions are grouped into the following cost heads in a cost sheet:
(i) Prime Cost (ii) Cost of Production
(iii) Cost of Goods Sold
(iv) Cost of Sales
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