A Project Report On

“COST SHEET”

Submitted in partial fulfillment of the requirement for the award of

MASTERS OF BUSINESS ADMINISTARTION

From
NARAYANA BUSINESS SCHOOL, AHMEDABAD

Subject : Management Accounting

Component : CEC

Submitted By
NAME : Shashank Pandey
BATCH : MBA 2022-24
ROLL NO : 046
SECTION : OMEGA

Under The Guidance Of

NAME : Prof.Shikha Bhagat
DESIGNATION : Asst. Professor
DEPARTMENT : Managerial Accounting
Shop Name:-BOMBAY VADAPAV

Owner’s Name:- Ramesh Yadav

Contact no- 9876621542

Address- Sanand Chowkdi , Near baker’s

Point ,Beside Navjivan Hotel ,Ahmedabad

Product – Dabeli
 INDEX

1. TITLE PAGE

2. INTRODUCTION OF THE PROJECT

3. COST SHEET DONE IN EXCEL

4. EXPLAINATION OF ASSUMPTION

5. CONCLUSION
 Introduction
This report is all about the cost sheet of dabeli shop. A cost sheet is a statement which represents
the various costs incurred at various stages of business operations, in a tabular format. It determines
the total cost or expenditure made by the organization, along with the cost incurred on each unit
of a product or service in a particular period. A cost sheet is a report which is accumulated all the
costs associated with a product or production job. A cost sheet is used to compile the margin earned
on a product or job, and can form the basis for the setting of prices on equivalent products in the
future.

A Cost Sheet depicts the following facts:

1. Total cost and cost per unit for a product.

2. The various elements of cost such as prime cost, factory cost, production cost, cost of goods
sold, total cost, etc.

3. Percentage of every expenditure to the total cost.

4. Compare the cost of any two periods and ascertain the inefficiencies if any.

5. Information to management for cost control

6. Calculate and summarize the total cost of the product

Different costs: Prime cost, Factory cost, Selling cost.

1. Prime cost: A prime cost is the total direct costs of production, including raw materials and
labor. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included
in prime costs. Businesses need to calculate the prime cost of each product manufactured
to ensure they are generating a profit. By calculating prime cost, businesses have a greater
understanding of their profit margin or the lowest price to sell a product.
2. Factory cost: This is made up of prime cost plus factory overhead, which includes indirect
wages, indirect material, and indirect expenses. Factory cost is also known as works cost,
production cost, or manufacturing cost.
3. Selling cost: The expenditures incurred by suppliers in creating and sustaining a demand
for their products. Selling costs include ADVERTISING expenditures, packaging and
styling, salaries, commissions and travelling expenses of sales personnel, and the cost of
shops and showrooms.
 QUESTIONNAIRES

1. What is the name of the owner and their shop?

2. What are the raw materials used in Dabeli?

3. How many units do you sell in one month?

4. What is the selling price of a Dabeli?

5. Apart from the raw material what else do you have to buy to sell your
product?

6. Are there any labour apart from you in the shop?

7. If yes, then what salary you pay them?

8. What are the direct expenses?

9. Is this your owned place or rented?

10. If yes, then what is the per month rent of the shop?

11. What is the electricity bill of the shop for a month?

12. 12.What is the cost of raw material you use in

dabeli?

13. Do you sell any other food items in your shop?

 COST SHEET
For the period of one month
PARTICULARS Total cost Per unit
Direct material 283350 3.9375
Direct labor 6000 0.833
Direct expenses 7200 1
Prime cost 41550 5.77
Factory overheads
Rent 12000 1.667
Electricity bill 1300 0.1805
Factory cost 54850 7.618
Selling and distribution overheads
Selling expenses(paper plate) 8640 1.2
Packing expenses 22320 3.1
Salary of sales man 6000 0.833

Cost of sales 91810 12.751

Profit 88190 12.248
Selling price 180000 25

Cost Volume Profit Analysis

1. Fixed Cost

Salaries (12000)+ Rent (12000)= 24000

2. Contribution = Total Sales – Total Variable Cost

= 180000 – 67810

= 112190

Contribution Per Unit = 112190/7200

= 15.58 Per Unit

 3. Profit Volume Ratio = Contribution / Sales * 100

= 112190/180000 * 100

= 62.33%

WORKING NOTES: -

1 No. of units they produce

In one day, they produce 240 pieces of dabeli and 7200 units in one month
2 Calculation of raw material
(a) Bread: - In one packet there are 12 bread so, for 240 pieces they required 20 packet
and each packet cost rs 35
So, for 1 day cost of bread is20 x 35
=700
And, for 1 month its cost = 700 x 30
=21000
(b) Masala peanuts:- In one day they use peanuts of rs30 to make 240 pieces
So, for one month production they use 30 x 30 = rs900 masala peanuts.
(c) Sauce: - for one day production they use rs25 of sauce in dabeli making
And, for one month is cost rs 30 x 30 = 750
(d) Butter:- In order to make dabeli they use butter which cost rs30 for one day production
and rs30 x 30 = rs900 for a month
(e) Green chutney:- The dabeli maker use to apply chutney in dabeli of rs20 in one day
production so, for the production they use 20 x 30= 600 rs
(f) They told us that they use 6 kg of potato in one day production which cost rs20 per kg
And, total cost of potato for one month production is 6kg x 20 per day x 30 days= 3600
(g) Pomegranate seeds:- For one day production they use rs20 of seeds in dabeli and for
 (h) productions of one month they use rs20 x 30 days = 600

3 Direct labor: - it refers to the salary and wages paid to the workers that can be directly
attributed to specific products or services. There is one person who involve in production dabeli
and for that he get a salary of rs6000 per month
4 Direct Expenses:- expenses incurred that varies directly with changes in volume of the cost
of production
The dabeli producer incurred a cost of gas in making dabeli as direct expense which
cost rs1800 for 1 week
And, for month it cost rs1800 x 4 = 7200
5 Factory overheads:- the cost which indirectly involved in production of product is known as
factory overheads
In dabeli making we get two factory cost
(a) Rent which is rs12000 per unit
(b) Electricity bill which is rs1300 per month
6 Selling & distribution overhead:- it include the cost which is associated with selling and
distribution of product & service.
In dabeli shop they involve the selling and distribution cost in the form of:-
(a) Aluminum foil which cost rs1 for 1 dabeli packing
And for 7200 dabeli it cost rs7200
(b) Paper plate it cost rs1.2 per plate
For 7200 plate it cost rs8640
(c) Polythene bags use in packing of dabeli which cost rs3 per unit but only about 70% of the
units of dabeli is packed with the use of polythene
So, the cost for one month is 7200 x 70/100
=5040 x 3
= 15120
(d) Salary:- there is one person who is involved in selling and distribution of dabeli.
 ASSUMPTIONS

 We have taken the assumption of electricity bill of 1300 because there are many products
sold on the shop but we took one single product i.e. Dabeli. 
 We have taken assumption that the cost of Green chutney is Rs.20per day production.
 We have taken the assumption that the foil paper used for packing of dabeli estimated
cost Rs1 per piece.
 CONCLUSION

A cost sheet, as the name itself suggests, is a document or a sheet containing the cost of a product or
a group of products. The industry uses it to determine the cost of the products manufactured and
fixation of the selling price after adding the Profit Margin. A cost sheet is a report that lists all the
costs connected with a product or manufacturing process. A cost sheet is used to calculate the
profit margin on a product or activity and set prices for related products in the future. It can also
be used to support a variety of cost-cutting methods. In this project, we have taken the cost sheet
of local vendor who Sell Dabeli , in which we can see what types of cost is incurred in making
dabeli and we came to know how to calculate the fixed cost, contribution, profit volume ratio.

Sr. no Name Roll no.

1 Shashank Pandey 046

2 Girish Parmar 014

3 Dhrunilsinh Chavda 013

4 Shital Sewda 047