Costing

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Chintan Patel (Querist)

27 June 2013 Hello everyone...can anyone tell me why cost sheet is prepared?what is the exact objective behind it?

Thanking You in advance!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

27 June 2013 Cost sheet is prepared for findout the cost of the product or service with detailed manner. that is the basic object.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

28 June 2013 Cost sheet is a statement which depicts detailed information about total costs and cost of a product manufactured during a particular period of time. The cost sheet is prepared for a particular period.

The cost sheet is prepared with the following objectives:-
1. It ascertains the total cost and cost per unit for a particular period.
2. It enables the management to fix up sale price of products.
3. It helps to present a comparative study of current costs with the costs of the corresponding period.
4. The management can identify the causes of inefficiencies and wastages and the management can take corrective measures.
5. It provides management with suitable information for management control.
6. It also helps the management considerably in formulating suitable and definite production policy.
7. Cost sheet enables the businessman to submit quotation against tenders.

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