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You are going to know about three main things after reading this page. They are:
So, let us start from first thing first. The term means a document, i.e. made manually or digitally to keep the costs of units of production of an organization. In a tabular form, it analyzes the cost of production in a particular period.
It can also have additional columns for cost per unit and the total per unit cost. This sheet can be used in future for two basic purposes: to control and determine the future expenses of a product.
The Cost Sheet can also be helpful for a comparative study between different firms. Such single outcome is useful for market competitions.
Based on the use of data, there can be two types. They are:
This type is prepared periodically, i.e. after a month, after the quarter year or a year. Actual cost is used here.
Here, an enterprise uses probable statements of cost. This is also prepared after regular intervals. Estimated and actual costs are tallied, thus making an idea about the circumstances and performances. This sheet can be effectively used in expense management.
Expenses for raw materials and labor are included here. Here, the total cost should be calculated for the whole production time.
Expenses of import, export; model, pattern and any other expenses
Indirect materials and labor costs, rent, economic assistance for workers etc
Wastage or scrap can be the faulty materials obtained by production. If the value of scrap is minimum, or there can be some income by using this wastage again in the production; then the cost is added to the profit. But if it has a significant value, then the value is deducted from the total profit.
In a factory, those works which are about to complete are the work-in-process. The cost of it should be calculated by considering an estimated value which is added to the total cost later.
All expenses related to office and administration, like salary, stationary, power usage expenses etc.
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