Cost accounting exam 3

  • How to prepare a cost sheet?

    Method of Preparation of Cost Sheet:
    Step I = Prime Cost = Direct Material + Direct Labour + Direct Expenses.
    ADVERTISEMENTS: Step II = Works Cost = Prime Cost + Factory/Indirect Expenses.
    Step III = Cost of Production = Works Cost + Office and Administration Expenses..

  • Present and interpret data for management planning, decision-making, and control.
    Help in the preparation of budgets and implementation of budgetary control.
    Aid management in the formulation and implementation of incentive bonus plans on the basis of productivity and cost savings.

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