For ascertainment of cost of production and profit, cost sheets are prepared on periodical basis.
The proforma cost sheet is given below:
The cost sheet not only shows the total cost but also the cost per unit for a particular period and it helps the management in cost comparison, analysis and control. The accumulation of costs as shown in the cost sheet is easy to prepare and simple to understand and it help in ascertainment of each element of cost in total cost and it is useful in fixation of prices of the products.