Accounting For Managers-Cost Sheet

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Accounting For Managers-Cost Sheet

  1. 1. INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH, BHOPAL PRESENTATION ON COST SHEET Prsented by:-SUBMITTED TO- Jaysingh RajputProf. Abhishek Jain Harshid Rai Hariom Prajapati Sandeep Patel
  2. 2. Cost sheet is a statement, which showsvarious components of total cost of a product.It is detailed statement depicting the subdivision cost arranged in logical order underdifferent head
  3. 3.  It provides the total cost figure as well as cost per unit of production. It helps in cost comparison. It facilitates the preparation of cost estimates as well as cost per unit of production. It provides sufficient help in arriving at the figure of selling price. It facilitates cost control by operational efficiency.
  4. 4. DESCRIPTION TOTAL COST DIRECT COST OVERHEADS TOTAL COST PER UNIT COST PER PER UNIT UNITBills of material - - -costDirect Labour - - -Manufacturing - - -OverheadsMarketing - - -&administrativeoverheadsTotal cost per -unitAdd- Desired -profitDesired selling -price per unit
  5. 5. DESCRIPTION TOTAL TOTAL TOTAL FIXED VARIABL TOTAL COST FIXED VARIABL COST E COST / COST E COST / UNIT COST UNIT / UNITBills of material - - - -costDirect Labour - - - -Manufacturing - - - - - -OverheadsMarketing - - - - - -&administrativeoverheadsTotal cost per - - -unitAdd- Desired -profitDesired selling -
  6. 6. Profitability Statement DIRECT PRODUCT PROFITABILITY (DPP)An assessment of the net profit generated by a particular product, which considers costs such as distribution, warehousing and retailing but not the original purchase price.Benefits Of DPP Better cost Analysis Better pricing decisions Better Management of stores & warehouse space.
  7. 7. Customer Profitability Analysis Organizations used to identify the most valuable customers or customer segments to prioritize marketing, sales and service investments.Benefits of CPA Helps Suppliers to identify which customers are eroding overall profitability & which customers are contributing to it.

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