FINANCIAL ACCOUNTING
COST SHEET
,COST SHEET
A cost sheet is a statement that shows the various components of
total cost for a product and shows previous data for comparison.
You can deduce the ideal selling price of a product based on
the cost sheet. A cost sheet document can be prepared either
by using historical cost or by referring to estimated costs
, Elements of Cost
Cost classified into two categories such as Direct Material and
Indirect Material, Direct Labour and Indirect Labour, Direct
Expenses and Indirect Expenses. We need to add all direct
material, direct labor, and direct expenses to calculate the
prime cost.
Likewise, we add all indirect material, indirect labor, and indirect
expenses to calculate the overhead cost. Again, we can
bifurcate the overheads into four categories. They are factory
overhead, administrative overhead, selling overhead and
distribution overhead.
COST SHEET
,COST SHEET
A cost sheet is a statement that shows the various components of
total cost for a product and shows previous data for comparison.
You can deduce the ideal selling price of a product based on
the cost sheet. A cost sheet document can be prepared either
by using historical cost or by referring to estimated costs
, Elements of Cost
Cost classified into two categories such as Direct Material and
Indirect Material, Direct Labour and Indirect Labour, Direct
Expenses and Indirect Expenses. We need to add all direct
material, direct labor, and direct expenses to calculate the
prime cost.
Likewise, we add all indirect material, indirect labor, and indirect
expenses to calculate the overhead cost. Again, we can
bifurcate the overheads into four categories. They are factory
overhead, administrative overhead, selling overhead and
distribution overhead.
