B Com Exam > B Com Notes > Cost Management > Preparation of Cost Sheet - Overheads, Cost Management
Preparation of Cost Sheet - Overheads, Cost Management | Cost Management - B Com PDF Download
Cost Sheet
Cost sheet is a document that provides for the assembly of an estimated detailed cost in respect of cost centers and cost units. It analyzes and classifies in a tabular form the expenses on different items for a particular period. Additional columns may also be provided to show the cost of a particular unit pertaining to each item of expenditure and the total per unit cost.
Cost sheet may be prepared on the basis of actual data (historical cost sheet) or on the basis of estimated data (estimated cost sheet), depending on the technique employed and the purpose to be achieved.
The techniques of preparing a cost sheet can be understood with the help of the following examples.
Example 1
Following information has been obtained from the records of left center corporation for the period from June 1 to June 30, 1998.
|
Cost of raw materials on June 1,1998 |
30,000 |
|
Purchase of raw materials during the month |
4,50,000 |
|
Wages paid |
2,30,000 |
|
Factory overheads |
92,000 |
|
Cost of work in progress on June 1, 1998 |
12,000 |
|
Cost of raw materials on June 30, 1998 |
15,000 |
|
Cost of stock of finished goods on June 1, 1998 |
60,000 |
|
Cost of stock of finished goods on June 30, 1998 |
55,000 |
|
Selling and distribution overheads |
20,000 |
|
Sales |
9,00,000 |
|
Administration overheads |
30,000 |
Prepare a statement of cost.
Solution
Statement of cost of production of goods manufactured for the period ending on June 30, 1998.
Example 2
From the following information, prepare a cost sheet showing the total cost per ton for the period ended on December 31, 1998.
| Raw materials | 33,000 | Rent and taxes (office) | 500 |
| Productive wages | 35,000 | Water supply | 1,200 |
| Direct expenses | 3,000 | Factory insurance | 1,100 |
| Unproductive wages | 10,500 | Office insurance | 500 |
| Factory rent and taxes | 2,200 | Legal expenses | 400 |
| Factory lighting | 1,500 | Rent of warehouse | 300 |
| Factory heating | 4,400 | Depreciation-- | -- |
| Motive power Haulage | 3,000 | Plant and machinery | 2,000 |
| Director’s fees (works) | 1,000 | Office building | 1,000 |
| Directors fees (office) | 2,000 | Delivery vans | 200 |
| Factory cleaning | 500 | Bad debt | 100 |
| Sundry office expenses | 200 | Advertising | 300 |
| Expenses | 800 | Sales department salaries | 1,500 |
| Factory stationery | 750 | Up keeping of delivery vans | 700 |
| Office stationery | 900 | Bank charges | 50 |
| Loose tools written off | 600 | Commission on sales | 1,500 |
The total output for the period has been 10000 tons.
Solution : Cost sheet for the period ended on December 31, 1998
| Raw materials | 33,000 | 71,000 |
| Production wages | 35,000 | |
| Direct expenses | 3,000 | |
| Prime cost | ---- | |
| Add--works overheads: | 10,500 | |
| Unproductive wages | 7,500 | |
| Factory rent and taxes | 2,200 | |
| Factory lighting | 1,500 | |
| Factory heating | 4,400 |
|
Motive power Works cost Office cost |
3,000 2,000 300 |
37,050 1,08,050 5,550 1,13,600 4,600 1,18,200 |
The document Preparation of Cost Sheet - Overheads, Cost Management | Cost Management - B Com is a part of the B Com Course Cost Management.
All you need of B Com at this link: B Com
|
48 videos|51 docs|17 tests
|
FAQs on Preparation of Cost Sheet - Overheads, Cost Management - Cost Management - B Com
| 1. What is a cost sheet and how is it prepared? |  |
Ans. A cost sheet is a statement that summarizes the costs incurred by a company during a specific period. It includes both direct costs (such as raw materials and labor) and indirect costs (such as overheads). To prepare a cost sheet, the company needs to gather information about all the costs related to production, allocate them to different cost centers, and then calculate the total cost for each center. These costs are then summarized and presented in the cost sheet.
| 2. What are overheads in the context of a cost sheet? | |
Ans. Overheads refer to the costs that are not directly attributable to a specific product or service. They include expenses such as rent, utilities, salaries of support staff, and depreciation of assets. In the context of a cost sheet, overheads are allocated to different cost centers based on their usage or allocation bases. These overhead costs are then added to the direct costs to calculate the total cost of production.
| 3. How can cost management help companies improve their profitability? | |
Ans. Cost management refers to the strategies and techniques implemented by companies to control and reduce their costs. By effectively managing costs, companies can improve their profitability in several ways. Firstly, cost management helps identify areas of unnecessary expenditure and eliminate them, leading to cost savings. Secondly, it allows companies to optimize their resource allocation, ensuring that resources are used efficiently. Lastly, cost management enables companies to make informed pricing decisions, ensuring that their products or services are priced competitively in the market.
| 4. What are the key components of a cost sheet? | |
Ans. The key components of a cost sheet include direct costs, indirect costs (overheads), and the total cost of production. Direct costs refer to the costs that can be directly attributed to the production of a specific product or service, such as raw materials and direct labor. Indirect costs are the overhead costs that are incurred to support the production process but cannot be directly linked to a specific product. These include items like rent, utilities, and administrative expenses. The total cost of production is the sum of the direct costs and the allocated overhead costs.
| 5. How can a cost sheet be used for decision-making? | |
Ans. A cost sheet provides valuable information that can be used for decision-making in various ways. Firstly, it helps in determining the cost of production for a specific product or service, which is important in pricing decisions. Companies can analyze the cost sheet to ensure that their products are priced appropriately to cover all costs and generate a desired profit margin. Secondly, a cost sheet can be used to identify cost-saving opportunities by analyzing the various cost components. By identifying areas of high costs, companies can take measures to reduce or eliminate them, leading to improved profitability. Finally, a cost sheet can aid in evaluating the profitability of different products or services by comparing their costs and revenues. This information can guide companies in making decisions regarding product mix, discontinuing unprofitable products, or focusing on high-margin offerings.
Related Exams
About this Document
|
5.1K Views |
|
4.97/5 Rating |
|
Nov 22, 2024 Last updated |
Document Description: Preparation of Cost Sheet - Overheads, Cost Management for B Com 2024 is part of Cost Management preparation.
The notes and questions for Preparation of Cost Sheet - Overheads, Cost Management have been prepared according to the B Com exam syllabus. Information about Preparation of Cost Sheet - Overheads, Cost Management covers topics
like and Preparation of Cost Sheet - Overheads, Cost Management Example, for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Preparation of Cost Sheet - Overheads, Cost Management.
Introduction of Preparation of Cost Sheet - Overheads, Cost Management in English is available as part of our Cost Management
for B Com & Preparation of Cost Sheet - Overheads, Cost Management in Hindi for Cost Management course.
Download more important topics related with notes, lectures and mock test series for B Com
Exam by signing up for free. B Com: Preparation of Cost Sheet - Overheads, Cost Management | Cost Management - B Com
Description
Full syllabus notes, lecture & questions for Preparation of Cost Sheet - Overheads, Cost Management | Cost Management - B Com - B Com | Plus excerises question with solution to help you revise complete syllabus for Cost Management | Best notes, free PDF download
Information about Preparation of Cost Sheet - Overheads, Cost Management
In this doc you can find the meaning of Preparation of Cost Sheet - Overheads, Cost Management defined & explained in the simplest way possible. Besides explaining types of
Preparation of Cost Sheet - Overheads, Cost Management theory, EduRev gives you an ample number of questions to practice Preparation of Cost Sheet - Overheads, Cost Management tests, examples and also practice B Com
tests
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Preparation of Cost Sheet - Overheads
,shortcuts and tricks
,video lectures
,Summary
,practice quizzes
,Preparation of Cost Sheet - Overheads
,mock tests for examination
,Important questions
,Previous Year Questions with Solutions
,Free
,Preparation of Cost Sheet - Overheads
,Cost Management | Cost Management - B Com
,Exam
,Semester Notes
,Viva Questions
,Cost Management | Cost Management - B Com
,Cost Management | Cost Management - B Com
,MCQs
,ppt
,past year papers
,Extra Questions
,study material
,Objective type Questions
,Sample Paper
;
Additional Information about Preparation of Cost Sheet - Overheads, Cost Management for B Com Preparation
Preparation of Cost Sheet - Overheads, Cost Management Free PDF Download
The Preparation of Cost Sheet - Overheads, Cost Management is an invaluable resource that delves deep into the core of the B Com exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Preparation of Cost Sheet - Overheads, Cost Management now and kickstart your journey towards success in the B Com exam.
Importance of Preparation of Cost Sheet - Overheads, Cost Management
The importance of Preparation of Cost Sheet - Overheads, Cost Management cannot be overstated, especially for B Com aspirants.
This document holds the key to success in the B Com exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Preparation of Cost Sheet - Overheads, Cost Management Notes
Preparation of Cost Sheet - Overheads, Cost Management Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Preparation of Cost Sheet - Overheads, Cost Management.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Preparation of Cost Sheet - Overheads, Cost Management Notes on EduRev are your ultimate resource for success.
Preparation of Cost Sheet - Overheads, Cost Management B Com Questions
The "Preparation of Cost Sheet - Overheads, Cost Management B Com Questions" guide is a valuable resource for all aspiring students preparing for the
B Com exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Preparation of Cost Sheet - Overheads, Cost Management on the App
Students of B Com can study Preparation of Cost Sheet - Overheads, Cost Management alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Preparation of Cost Sheet - Overheads, Cost Management,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Preparation of Cost Sheet - Overheads, Cost Management is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup