# SEMESTER--1.  This is a method of calculating cost of production. Generally this method is used in such industries where :  The production is continuous,

## Presentation on theme: "SEMESTER--1.  This is a method of calculating cost of production. Generally this method is used in such industries where :  The production is continuous,"— Presentation transcript:

SEMESTER--1

 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.

 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.

 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.

 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.

Download ppt "SEMESTER--1.  This is a method of calculating cost of production. Generally this method is used in such industries where :  The production is continuous,"

Similar presentations