Statement of Cost
>> July 31, 2010
Statement of Cost is a memorandum statement which is not made according to the double entry system. It is a statement which is made for calculating total cost, per unit cost and budget cost of product. All elements of cost in statement of cost are taken from financial accounting's historical records. If there is difference between the items of statement of cost and financial accounting data, we reconciliation of this after sometime. This statement also know as cost sheet which is very necessary for calculating the price of product.
Specimen of Cost Sheet or Statement of Cost
Direct material XXXX
Add Direct labour XXXX
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Prime cost XXXX
Add Work overheads XXXX
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Works cost XXXX
Add administrative overheads XXXX
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Cost of production XXXX
Add Selling and distribution overheads XXXX
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Total cost or cost of sale
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