Cost Sheet in Cost Accounting

Components of Cost
PRIME COST
SUM TOTAL OF ALL DIRECT MATERIAL COSTS, DIRECT LABOUR COSTS AND DIRECT EXPENSES. PRIME COST IS ALSO CALLED AS DIRECT COST

FACTORY COST OR WORKS COST
PRIME COST + WORKS OVERHEAD OR FACTORY OVERHEADS IS FACTORY COST

OFFICE COST: FACTORY COST +OFFICE EXPENSES OR OFFICE OVERHEADS IS OFFICE COST. THIS IS ALSO CALLED AS COST OF PRODUCTION

COST OF GOOD SOLD- OFFICE COST +SALES AND DISTRIBUTION EXPENSES. THIS IS ALSO CALLED AS TOTAL COST

IN THIS WHEN THE MARGIN IS ADDED IT BECOMES THE SELLING PRICE

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