Cost Sheet

 

Cost Sheet

Cost Sheet is a statement prepared to show the different elements of cost. Preparation of cost sheet is one of the functions of cost accounting.

Meaning: The expenses of a product are analyzed under different heads in the form of statement. This statement is called cost sheet.

Purpose:

  It provides details of total cost under logical classification

It provides cost per unit in difference stages

It helps in comparison and control of cost

Cost sheet is helpful in estimation of cost for preparation of tender and quotations

It acts as basis for fixation of selling price.