INTRODUCTION (COST SHEET)

INTRODUCTION

• One of the objectives of cost accounting system is ascertainment of cost for a cost object. The cost objects may be a product, service or any cost centre. 
• Ascertainment of cost includes element wise collection of costs, accumulation of the costs so collected for a certain volume or period and then arrange all these accumulated costs into a sheet to calculate total cost for the cost object.
•  In this chapter, a product or a service will be the cost object for cost calculation and cost ascertainment. A Cost Sheet or Cost Statement is “a document which provides a detailed cost information. 
• In a typical cost sheet, cost information are presented on the basis of functional classification. However, other classification may also be adopted as per the requirements of users of the information.