OPERATINGCOSTING

P R E S E N T E D B Y:

A K S H I T J A I S WA L A K S H I TA S I N H A AMISHA
G O YA L

G A U R AV S I N H A ANJALI MUNI SAGAR

MEHER
Costing
Methods of Costing
Operating Costing
 It is related to operation of business.
 It is related to operation of device or facility.
 Features Of Operating Costing
1. Cost classification
2. Periodical ascertainment of costs
3. Many stages and processes
4. Valuation of work-in-progress
5. Intangible products
6. Cost unit differs
 Types of Operating Costing
1.Transport Costing
Private Transport
Passenger Transport
Goods Transport
2. Power Generation and Distribution
Costing
3. Boiler House Costing 4. Canteen Costing

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5. Hospital Costing 6. Hotel Costing

Calculate operating costing

Total operating costs = 

Cost of goods sold (COGS) + operating expenses
(OPEX)
 AREA OF OPERATING COSTING
• Transport services – Bus, car, trucks, railway & ship etc.

•Entertainment services- cinema, club, circus, drama etc.

•Welfare services – hospital, libraries, canteens, hotels, educational
institutions, etc.
•Supply services – gas supply, electricity supply , water supply.
AREA OF OPERATING COSTING

•Communication services – T.V, radio, telephone, mobile, internet

computer services etc.

•Municipal services – street lighting, road maintenance, water supply.

Scope of Operating Costing
1. Transport Services
2. Supply Services
3. Welfare Services
4. Entertainment services
5. Municipal services
Conclusion