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
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
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.
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
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 -
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.
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.