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Cost sheet is a statement prepared to show the different elements of cost. Preparation of cost sheet is one of the functions of cost accounting.
TECHNIQUES OF COSTING
1. Historical Cost: Under this method cost is ascertained on the basis
of actual expenses incurred after the production is complete. To ascertain the price of a tender or quotation , actual cost figures of previous year are used as a basis.
METHODS OF COSTING
1. Single Costing : This method is also known as output costing or unit costing. This method is used in in such industries where only one item is produced in large quantities during the whole year EXAMPLES cement, flour, sugar and coal. Under this method cost per tonne is computed. 2. Operating Costing : In industries where no commodity is produced but public utility service is provided. EXAMPLES railways, bus transport, and electric supply. 3. Process Costing : In the industries where the production is completed through many processes or where the production may be sold after completion of one or a few or all processes, this method of costing is used. EXAMPLES chemical , textile, and oil industries. 4. Departmental Costing : When in a factory more than one items are manufactured , it is necessary to ascertain the cost of each item separately. For this purpose total expenses are divided between various department on
ELEMENTS OF COST
ELEMENTS OF COSTS
MATERIAL S
LABOUR
EXPENSES
DIRECT MATERIA L
INDIRECT MATERIAL
DIRECT LABOUR
INDIRECT LABOUR
DIRECT EXPENSE S
INDIRECT EXPENSE S
DIRECT COST
INDIRECT COST