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Cost accounting is concerned with the systematic recording, classification, analysis and presentation of costs for the purpose of ascertaining the cost of products or services and for exercising control over expenditure. Among the various techniques used in cost accounting, the preparation of a cost sheet occupies an important place because it provides a detailed statement of costs incurred at different stages of production. A cost sheet is a statement that shows the various components of total cost for a specific period or for a particular unit of output. It is prepared in a tabular form and presents cost under suitable headings such as prime cost, factory cost, cost of production, cost of goods sold and cost of sales. It serves as a useful tool for cost ascertainment, cost comparison and managerial decision-making. The meaning of a cost sheet can be understood as a memorandum statement that summarizes the elements of cost incurred in the manufacture and sale of a product. It is generally prepared at the end of an accounting period and is not a part of the double entry system. It may be prepared for a job, a batch, a process, a department or for the entire organization. The objective is to present a complete picture of cost composition in a simple and understandable manner. By arranging cost data systematically, it helps management to determine the per unit cost and to fix selling prices ________ _______ _______ _____ ________ ________ ______ ___.
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