COST SHEET

COST SHEET
• For determination of total cost of production, a statement showing
the various elements of cost is prepared.
• This statement is called as a Statement of Cost or Cost Sheet.
• The Cost sheet 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.
• The cost sheet of a business organization provides an insight into its
performance and efficiency
• Cost Sheet helps in competitive analysis and improvement of the
business operations through cost reduction.
NON COST ITEMS
Income/ Gains
(A) Transfer Fees
(B) Interest Received
(C) Dividend Received
(D) Rental Income
(E) Profit on Sale of Fixed Asset
(F) Profit on Sale of Investment
(G) Profit from Speculative
Activities
Expenses / Losses
(A) Preliminary expenses written off
(B) Goodwill written off
(C) Brokerage on Issue of Shares
(D) Underwriting Commission
(E) Interest on Loans
(F) Fines and Penalties
(G) Loss on Sale of Fixed Assets
(H) Loss on Sale of Investment
(I) Interest on Capital
Appropriations
(A) Provision for Taxation
(B) Provision for Dividend
(C) Provision for Dividend
Distribution Tax
(D) Transfer to Various Reserves