What You Will Learn!
- Unit Costing and Tender Price
- Meaning of Unit Costing
- Characteristics of Unit Costing
- Objectives of Unit Costing
- Method of Unit Costing
- Calculation of material consumed or Material used
- Unit costing Question
- ITEMS NOT TO BE INCLUDED IN COST ACCOUNTS
- Statement of Cost
- Cost Sheet
- Difference between Cost Sheet and Statement of Cost
- Meaning of Tender Price
- Different types of estimated cost sheet for tender price
- Types of Overhead and Its Classification
- Example of fixed overhead and variable overhead
Description
Meaning of unit costing
Contents :
1. It is a method of costing used in industry.
2. Where production of single product and continuous production.
3. Total cost and cost per unit of output is ascertained.
4. One of the simplest method of costing.
5. To ascertain the profit or loss on production.
Different methods of cost accounting :
1) Unit costing method
2) Contract costing method
3) Job costing method
4) Process costing method
5) Batch costing method
6) Operating costing method
7) Multiple costing method
8) Departmental costing method
9) Cost plus method
10) Target costing method
Characteristics of Unit Costing
Objectives of Unit Costing
Method of Unit Costing
Calculation of material consumed or Material used
ITEMS NOT TO BE INCLUDED IN COST ACCOUNTS :
[A] Financial Incomes :
i. Dividend and interest received
ii. Rent received
iii. Profit on sale of assets and investments
iv. Share transfer fees
v. Commission received
vi. Dividend received
vii. Brokerage, Commission and Discount Received
viii. Interest on Investment
[B] Financial Expenses :
i. Interest on Debenture
ii. Cash Discount
iii. Interest on capital
iv. Compensation payable to Employees
v. Interest on Loan
vi. Loss on sale of Assets and Investments
vii. Penalties and Fines
viii. Underwriting Commission
ix. Discount on shares and Debenture
x. Expenses on Issue of shares
[C] Appropriation of Profits :
i. Income Tax and Wealth Tax
ii. Dividend Paid
iii. Donations
iv. Preliminary Expenses
v. Transfer to Sinking Fund
[D] Abnormal Items :
i. Abnormal Loss of materials, Labours, and Assets
ii. Abnormal Idle Time
iii. Abnormal Bad Debts
iv. Loss in the Value of Machinery and Plant due to Obsolescence
Statement of Cost
Cost Sheet
Difference between Cost Sheet and Statement of Cost
Tender Price
Contents :
1. Tender statement is a cost sheet
2. Which shows estimated cost of production
3. And a reasonable amount of profit.
Meaning of Tender Price
Different types of estimated cost sheet for tender price
Types of Overhead :
(A) On the basis of Nature
(B) On the basis of Function
Classification on the basis of Nature
Example of fixed overhead and variable overhead
Example of semi–variable overhead
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.
