Cost Sheet

Question 1

Classification of cost sheet

Answer 1

Functional
Heads of cost
Format
Advantages of cost sheet

Question 2

Functional classification of cost sheet

Answer 2

Direct material
Direct labour
Direct expenses
Production/ manufacturing OH
Administration OH
Selling OH
Distribution OH
Research & Development cost

Question 3

Heads of cost in coat sheet

Answer 3

Prime cost
Cost of production
Cost of goods sold
Cost of sales

Question 4

Various items in Cost sheet

Answer 4

Abnormal cost
Subsidiary/ grant/ incentives
Penalty, fine, damages and demurrage
Interest and other finance costs

Question 5

Advantages of cost sheet

Answer 5

• it provides the total cost figure as well as cost per unit production
• it helps in cost comparison
• it facilitates the preparation of cost estimates required for submitting tenders
• it provides sufficient help in arriving at the figure of selling price
• it provides sufficient help in arriving at the figure of selling price
• it facilitates cost control by disclosing operational efficiency