8/13/2019 31347603 Ppt on Cost Sheet

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Presentation on Cost Sheet

Team members

Name Roll No

1. Muhammed Ibrahim.C 21

2.Pooja.S.Shah 39

3.Ali Asgar 2

4.Vineet 47

5.Aabid 10

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COST

The amount of expenditure ( actual or notional)

incurred on, or attributable to, a given thing.

The value of Economic Resources used

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COST ACCOUNTING

Cost accounting is concerned with

Recording,

Classifying and

Summarizing costsFor

1.Determination of costs of products or services,

2. Planning, controlling and reducing such costs3. Furnishing of information to management for

decision making

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COST

MATERIALS LABOUROTHER EXPENSES

DIRECTDIRECT DIRECTINDIRECT INDIRECTINDIRECT

OVERHEADS

FOH AOH SOHDOH

ELEMENTS

OF

COST

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MATERIAL:

The substance from which the finished

product is made is known as material.

Direct material is one which can be directly

or easily identified in the product Eg: Timberin furniture, Cloth in dress, etc.

Indirect material is one which is required to

make the product but not going inside the

finished good.

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Examples of Indirect material

At factory levellubricants, oil,

consumables, etc.

At office levelPrinting & stationery,

Brooms, Dusters, etc.

At selling & dist. levelPacking materials,

printing & stationery, etc.

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LABOUR:

The human effort required to convert the materials

into finished product is called labour.

DIRECT LABOUR is one which can be

conveniently identified or attributed wholly to aparticular job, product or process.

Eg:wages paid to carpenter, fees paid to tailor,etc.

INDIRECT LABOUR is one which cannot beconveniently identified or attributed wholly to a

particular job, product or process.

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Examples of Indirect labour

At factory levelforemens salary, worksmanagers salary, gate keepers salary,etc

At office levelAccountants salary, GMssalary, Managers salary, etc.

At selling and dist.levelsalesmen salaries,

Logistics manager salary, etc.

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OTHER EXPENSES

are those expenses other than materials and labour.

DIRECT EXPENSESare those expenses which can be

directly allocated to particular job, process or

product. Eg : Excise duty, royalty, special hirecharges,etc.

INDIRECT EXPENSESare those expenses which

cannot be directly allocated to particular job,

process or product.

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Examples of other expenses

At factory levelfactory rent, factory

insurance, lighting, etc.

At office leveloffice rent, office

insurance, office lighting, etc.

At sales & distribution leveladvertising,

show room expenses like rent, insurance,etc.

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COST SHEET

DIRECT MATERIAL

DIRECT LABOUR

DIRECT EXPENSES

PRIME COST

FACTORY OVERHEADS

FACTORY COSTOFFICE OVERHEADS

COST OF PRODUCTION

SELL & DIST OVERHEADS

COST OF SALES

PROFIT

SALES

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COST SHEET - ADVANCED

OPENING STOCK OF RAW MATERIALS+PURCHASES

+CARRIAGE INWARDS

-CLOSING STOCK OF RAW MATERIALS

VALUE OF MATERIALS CONSUMED

+DIRECT WAGES

+DIRECT EXPENSES

PRIME COST

+FACTORY OVERHEADS

+OPENING STOCK OF WIP-CLOSING STOCK OF WIP

FACTORY COST

(CONT.)

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FACTORY COST

+ADMINISTRATIVE OVERHEADS

COST OF PRODUCTION

+OPENING STOCK OF FINISHED GOODS

-CLOSING STOCK OF FINISHED GOODS

COST OF GOODS SOLD+SELL. & DIST. OVERHEADS

COST OF SALES

+PROFIT

SALES

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Methods of costing

1. Job costing Eg: printing

2. Contract costing Eg: Construction of roads

3. Batch costing Eg: Bakery

4. Unit costing Eg: Brick making

5.

Process costing Eg: Paint6. Operating costing Eg: Bus service

7. Multiple costing Eg: car Manufacturing

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Benefits of cost sheet

Guide for pricing decisions

Base for cost control

Ease in calculation of per piece cost

Deals with monetary as well as non-monetary

Provide valuable information about plants &

machinery

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THANK YOU