PPT - Unit Costing | Cost Accounting - B Com PDF Download

 Page 1


Unit or Output Costing-I
(Cost Sheet ,Cost Statement and 
Production Account)
Page 2


Unit or Output Costing-I
(Cost Sheet ,Cost Statement and 
Production Account)
Meaning
• Unit or Output costing is used in those 
industries or organisations where standard 
products are produced from a common 
process and all the units produced are more 
or less similar to each other.
• This method is also known as “Single Costing 
Method”.
Page 3


Unit or Output Costing-I
(Cost Sheet ,Cost Statement and 
Production Account)
Meaning
• Unit or Output costing is used in those 
industries or organisations where standard 
products are produced from a common 
process and all the units produced are more 
or less similar to each other.
• This method is also known as “Single Costing 
Method”.
Definition of Unit or Output Costing
“Unit Costing method is a Method of costing 
applied to ascertain the cost per unit or 
production where standard and identical 
products are manufactured.
Walter W.Bigg.
Page 4


Unit or Output Costing-I
(Cost Sheet ,Cost Statement and 
Production Account)
Meaning
• Unit or Output costing is used in those 
industries or organisations where standard 
products are produced from a common 
process and all the units produced are more 
or less similar to each other.
• This method is also known as “Single Costing 
Method”.
Definition of Unit or Output Costing
“Unit Costing method is a Method of costing 
applied to ascertain the cost per unit or 
production where standard and identical 
products are manufactured.
Walter W.Bigg.
Charachterstics of Unit Production
• Production should be uniform or 
Homogeneous
• Identical products
• The cost unit should be physical /natural
• Per Unit cost should be determined ,for eg.Per
ton, per metre etc.
Page 5


Unit or Output Costing-I
(Cost Sheet ,Cost Statement and 
Production Account)
Meaning
• Unit or Output costing is used in those 
industries or organisations where standard 
products are produced from a common 
process and all the units produced are more 
or less similar to each other.
• This method is also known as “Single Costing 
Method”.
Definition of Unit or Output Costing
“Unit Costing method is a Method of costing 
applied to ascertain the cost per unit or 
production where standard and identical 
products are manufactured.
Walter W.Bigg.
Charachterstics of Unit Production
• Production should be uniform or 
Homogeneous
• Identical products
• The cost unit should be physical /natural
• Per Unit cost should be determined ,for eg.Per
ton, per metre etc.
Objectives of Unit /Output Costing
• To know the totsl cost of production
• To classify cost under related categories such as prime 
cost,works cost etc.
• To determine the effect of each element of cost
• To compare cost during two or more periods
• To determine proposed setting price to earn desired profit
• To Determine tender price on the basis of Cost Data and 
Fututre prospects.