This document defines key terms related to determining the selling price of goods and services. It defines cost as the amount that must be paid to produce something, including expenses from materials, resources, time, and risks. It defines costing as a method to calculate the total cost per unit by including all fixed and variable costs of production. It also defines cost accounting as a process that measures input and production costs to help management assess financial performance. It then provides an overview of direct costs, indirect costs, and the total costs involved in production and sales, and how understanding costs through a cost sheet can help set the optimal selling price.

1. DETERMINATION OF SELLING
PRICE
BY- LEESA SHAH

2. Definition of cost
 An amount that has to be paid or given
up in order to get something.
 In business, cost is usually
a monetary valuation of (1) effort,
(2) material, (3) resources, (4) time
and utilities consumed, (5) risks incurred,
and (6) opportunity forgone
in production and delivery of a good
or service. All expenses are costs, but
not all costs (such as
those incurred in acquisition of an income-
generating asset) are expenses.

3. Definition of costing
 A managerial accounting method that
describes when all fixed and variable
costs, including manufacturing costs,
are used to compute the total cost per
unit. Full costing includes these costs
when computing the amount of money
it takes to produce and distribute one
unit of output.

4. Definition of cost accounting
 A type of accounting process that aims to
capture a company's costs
of production by assessing the input
costs of each step of production as well
as fixed costs such as depreciation of
capital equipment. Cost accounting will
first measure and record these costs
individually, then compare input results to
output or actual results to aid company
management in measuring financial
performance.

6. DIRECT
MATERIALS
DIRECT
LABOUR
DIRECT
EXPENSES
PRIME COST
WORKS/
FACTORY
COST FACTORY
COST
OFFICE & ADMIN
COST
COST OF
PRODUCTION
SELLING &
DISTRIBUTION
COSST TOTAL COST
PROFIT/ LOSS
SALES VALUE

7. Conclusion
Therefore I conclude here that cost
sheet
helps in fixing up the selling price more
accurately and helps the businessman
to minimize the cost of
production when there is a cut throat
competition.