Following are the methods used to find out the cost of production: 1. Statement of Cost 2. Cost Sheet 3. Tender Statement 4. Production Account. Method # 1. Statement of Cost: Statement of cost is a tabulated statement which shows the production cost of fixed quantity of a product, which is related to the production in a fixed time. Under [...]
In this article we will discuss about the formulas used to determine cost. 1. Calculation of the Cost of Materials Consumed: Raw materials which become part and parcel of the commodity manufactured are known as direct materials. If opening stock of raw materials, purchase of raw materials, loss of raw materials, transfer of raw materials are given, then cost of [...]
In this article we will discuss about:- 1. Meaning of Output Costing 2. Features of Output Costing 3. Objectives 4. Important Items Regarding Preparation of Statement of Cost and Cost Sheet 5. Cost Collection or Cost Accumulation. Contents: Meaning of Output Costing Features of Output Costing Objectives of Output Costing Important Items Regarding Preparation of Statement of Cost and Cost [...]