A cost sheet is a document that provides detailed cost information for a cost center or unit of production. It breaks down total costs into elements like prime cost, factory cost, and production cost. Cost sheets are prepared regularly, such as weekly or monthly, and reveal the total and per-unit costs of goods produced. They also allow for comparison of current costs to previous periods. Cost sheets are important for ascertaining actual costs, fixing selling prices, controlling costs during production, and facilitating managerial decisions.

1. COST SHEET
Vinita Kale
MIT School of Management, Pune

2.  Cost sheet is defined as “a document which
provides for the assembly of the detailed cost of a
cost centre or cost unit.”
 Thus cost sheet is a periodical statement of cost
designed to show in detail the various elements
of cost of goods produced like prime cost, factory
cost ,cost of production and total cost.

3.  It is prepared on regular intervals e. g. weekly,
monthly , quarterly , yearly ,etc.

4. PURPOSE OF COST SHEET
 It reveals the total cost and cost per unit of goods
produced.
 It discloses the break – up of total cost into
different elements of cost.
 It provides a comparative study of the cost of
current period with that of the corresponding
previous period.

5.  It controls cost.
 It acts as a guide to management in fixation of
selling price & quotation of tenders.

6. IMPORTANCE OF COST SHEET
 Cost ascertainment-The main objective of the
cost sheet is to ascertain the cost of a product.
Cost sheet helps in ascertainment of cost for the
purpose of determining cost after they are
incurred. It also helps to ascertain the actual cost
or estimated cost of a Job.

7.  Fixation of selling price-To fix the selling price of
a product or service, it is essential to prepare the
cost sheet. It helps in fixing selling price of a
product or service by providing
detailed information of the cost.

8.  Help in cost control-For controlling the cost of a
product it is necessary for every manufacturing
unit to prepare a cost sheet. Estimated cost sheet
helps in the control of
material cost, labour cost and overheads cost at
every point of production.

9.  Facilitates managerial decisions-It helps in
taking important decisions by the management
such as: whether to produce or buy a component,
what prices of goods are to be quoted in the
tender, whether to retain or replace an existing
machine etc.

10. ANY QUESTIONS ???

11. THANKING YOU !!!