Define cost sheet?

Outsourced costs The costs listed on a cost sheet usually include charges for actual material and labor costs incurred. However, it is also possible that these costs are only listed at their standard costs, which are obtained by backflushing; this is the process of multiplying the number of units produced by bills of material and labor routings to arrive at the costs that should have been associated with a product or job. The development of a cost sheet can be a major production, especially if it is compiled by hand. Even if it is drawn from a database of compiled costs, a cost accountant must still review it for duplicate, missing, or incorrect entries before issuing it. A cost sheet is normally issued along with an explanatory page that points out any unusual costs incurred or variances that management should be aware of.

Shipping and handling Supplies Outsourced costs The costs listed on a cost sheet usually include charges for actual material and labor costs incurred. However, it is also possible that these costs are only listed at their standard costs, which are obtained by backflushing; this is the process of multiplying the number of units produced by bills of material and labor routings to arrive at the costs that should have been associated with a product or job.

A cost sheet is prepared to know the outcome and breakup of costs for a particular accounting period. Cost sheets are prepared as per the requirements of the management, the information to be incorporated in a cost sheet should comprise of cost per unit and the total cost for the current period along with the cost per unit and the total cost of preceding period. According to CIMA London Cost Sheet is ‘A statement which provides for the assembly of the detailed cost of a centre or a cost unit’. It is also a periodical statement. ‘The expenditure which has been incurred upon product for a period is extracted from the financial books and the store records and set out in a memorandum statement. If this statement is confined to the disclosure of the costs of units produced dividing the period, it is termed as Cost- Sheet, but where the statement records both total cost, profit and sales, it is usually known as Statement of Cost or Production Account’. **COST SHEET OR STATEMENT OF COST** Total Units……… Opening Stock of Raw material ... ... ... ... ... ... ... ... Add: Purchases ... ... ... ... ... ... ... ... Less: Closing Stock ... ... ... ... ... ... ... ... Cost of material Consumed → ... ... ... ... ... ... ... ... Add: Direct Labor/Wages ... ... ... ... ... ... ... ... Prime Cost → ... ... ... ... ... ... ... ... Add: Works overheads ... ... ... ... ... ... ... ... Works Cost → ... ... ... ... ... ... ... ... Add: Administration overheads ... ... ... ... ... ... ... ... Cost of Production → ... ... ... ... ... ... ... ... Add: Selling and distribution overheads ... ... ... ... ... ... ... ... Total Cost or Cost of Sale → ... ... ... ... ... ... ... ...

Dear Friend, as far as your query is concerned that Define cost sheet? Let me informed that A cost sheet is a report on which is accumulated all of the costs associated with a product or production job. A cost sheet is used to compile the margin earned on a product or job, and can form the basis for the setting of prices on similar products in the future. It can also be used as the basis for a variety of cost control measures. Despite the name, a cost sheet can be compiled and viewed on a computer screen, as well as being manually developed on paper. The costs listed on the report are usually aggregated into the following categories: Direct materials Direct labor Allocated factory overhead In some situations, a cost sheet may also include a line item for allocated administrative overhead. In addition, the following costs may also appear on a cost sheet in varying degrees of detail: Shipping and handling Supplies Outsourced costs The costs listed on a cost sheet usually include charges for actual material and labor costs incurred. However, it is also possible that these costs are only listed at their standard costs, which are obtained by backflushing; this is the process of multiplying the number of units produced by bills of material and labor routings to arrive at the costs that should have been associated with a product or job. The development of a cost sheet can be a major production, especially if it is compiled by hand. Even if it is drawn from a database of compiled costs, a cost accountant must still review it for duplicate, missing, or incorrect entries before issuing it. A cost sheet is normally issued along with an explanatory page that points out any unusual costs incurred or variances that management should be aware of. The format of a cost sheet is usually a standard one that is either manually rolled forward from earlier reports, or else set up within the accounting system for automatic display when a report is printed. An alternative purpose for the cost sheet concept is to use it as the basis for a quote to a customer, usually for the manufacture of a custom product. In this case, the cost sheet includes the best estimates of the company's estimators for the requested product, with details for each of the previously indicated expense line items. Similar Terms A cost sheet is also known as a costing sheet. Hope answer was helpful to you Regards, Arjun Pratap Singh