1 / 5

Unit & O utput C osting

Unit & O utput C osting. SEMESTER--1. 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, The cost units are physical and natural to the product, and

ting
Télécharger la présentation

Unit & O utput C osting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit & Output Costing SEMESTER--1

  2. 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, • The cost units are physical and natural to the product, and • The cost per unit is to be known.

  3. Cost sheet • The 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.

  4. 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.

  5. Advantages of cost sheet • We 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.

More Related