Bank Charges in cost sheet

While Calculating Cost of Production should i consider bank charges and advertisement. if yes then how?? plz advice

Replies (5)
Quick Summary
This discussion explores whether bank charges and advertisement costs should be included in the cost sheet for calculating the cost of production. Generally, bank charges related to administration can be included as overheads, while advertisement costs are considered selling and distribution overheads, forming part of the cost of sales rather than the cost of production. Other related queries about office superintendent salaries and legal expenses are also touched upon.

No bank charges and advertisement are not considered in cost sheet

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

Yes agree with poornima it was a mistake
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.

Office superintendent salary in cost sheet ???

And legal expenses come in cost sheet or not ??

 

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