While Calculating Cost of Production should i consider bank charges and advertisement. if yes then how?? plz advice
5 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 12 May 2021
No bank charges and advertisement are not considered in cost sheet
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 12 May 2021
1) Bank charges related to office administration can form part of admin overheads and thus in cost of production
2) Advertisement is part of selling & distribution overhead and thus not part of cost of production but of cost of sales
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 12 May 2021
Yes agree with poornima it was a mistake
sabyasachi mukherjee
(27803 Points)
Replied 13 May 2021
Advertisement cost is added after cost of production.
So it forms a part of selling and distribution overhead.
It is always apportioned on the basis of sales hence forms part of cost of sales.
Bank charges is an overhead but forms finance cost.
So an indirect overhead of administration overhead.
So it forms a part of selling and distribution overhead.
It is always apportioned on the basis of sales hence forms part of cost of sales.
Bank charges is an overhead but forms finance cost.
So an indirect overhead of administration overhead.
Mandy Gill
(3 Points)
Replied 26 October 2022
Office superintendent salary in cost sheet ???
And legal expenses come in cost sheet or not ??
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