O utput C osting SEMESTER1 INTRODUCTION This is a method of calculating cost of production Generally this method is used in such industries where The production is continuous The units of output are homogenous ID: 167353
Download Presentation The PPT/PDF document "Unit &" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Unit & Output Costing
SEMESTER--1Slide2
INTRODUCTIONThis is a method of calculating cost of production. Generally this method is used in such industries where :
The production is continuous,
The units of output are homogenous,
The cost units are physical and natural to the product, and
The cost per unit is to be known.Slide3
Cost sheetThe cost sheet is a document of cost designed to show the total cost and per unit cost of the product in a detailed
form.It
can be prepared weekly, monthly, quarterly etc. as per the requirement.
Examples of industries where this method is used;
Coal industry, Textile industry, Brick-making industry, Cement industry etc.Slide4
OBJECTIVES OF UNIT COSTING
To ascertain the total cost and per unit cost of products after a definite period.
To know the proportion of each component in total cost such as prime cost, works cost, cost of production.
To make comparative study of costs of any two periods of a product in order to control the cost.
To estimate the selling price of the product in order to acquire a desired level of profit.
To ascertain the tender price of a work to be done.Slide5
Advantages of cost sheetWe can have knowledge of the total cost and per unit cost of units produced .
It helps in determining selling price of the production.
It helps to keep control over cost of production through a comparative study of the cost of any two periods.
It helps to ascertain the tender price of a work which is to be done in future.