Cost accounting

Items Exluded from cost accounting and therefore not included in cost sheet despite information being provided in a question
1. ITEMS OF APPROPRIATION OF PROFIT
a. Income tax paid and legal expenses re income tax
b Transfer to reserves
c.Dividend on shares paid
d.Amount written off- goodwill, prelim expenses, underwriting commission, dividend allowed on shares
e. Profit based payment to the employees

2.ITEMS OF PURE FINANCE
i. Income and dividend received
ii. Rent received
iii. profit or loss on sale of investment
iv. expenses on raising capital
v. cash discount allowed or received

3. ABNORMAL ITEMS
a. Cost of abnormal idle time
b. cost of abnormal wastage of material
c. exceptional bad debts
d. abnormal savings
e. penalties and fines paid for going against govt regulations and rules

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