Classification of costing

• • • • Classification by nature or elements Functional classification Classification on the basis of behavior Classification on managerial decisions and control:Marginal costing Opportunity cost Standard cost Differential cost

Feasibility of a project costing system Clear objectives Study the project Study the enterprise Deciding the cost structure Selecting the cost rates Introduction of the system Follow ups .

Cost sheet • For estimating the cost of the project the entrepreneur prepare a sheet which shows the detailed cost of the project called cost sheet. it has various advantage like • It facilitates comparisons • Helps the management in fixing the selling prices • Act as a guide to the management. .

Performa of cost Sheet .

conclusion .

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