Regarding cost sheet

Originally posted by : Akash Nahar
	I want to know that whether Interest and bonus expenses are to be included while preparing cost sheet or not.

As far as interest is concerned, it is a financial item; hence won't be included in Cost Sheet. On the other hand, bonus is not an exenditure at all, it is just capitalisation of reserves; so there doesn't arise any question of including it in Cost Sheet.

But the Bonus expense I asked was paid to staff as DIwali Bonus so what will be the treatment.

Originally posted by : Akash Nahar
	But the Bonus expense I asked was paid to staff as DIwali Bonus so what will be the treatment.

Ex gratia payments such as diwali bonus shall be treated as employee costs and therefore included in cost sheet as per Cost Accounting Standard-7.