Cost sheet is a statement of cost showing various elements or components of total cost. Besides total cost, cost per unit of output and cost at various stages (prime cost, works cost, cost of production and total cost) are also shown in the cost sheet. Information required for incorporation into the cost sheet is as follows:
a) Name of the product, cost centre or cost unit.
b) Period of cost sheet.
c) Output of the period.
d) Details of expenditure on various components of total cost.
e) Item-wise cost per unit.
f) Stock position of material, work-in-process, and finished goods.
g) Cost of goods sold.
h) Profit or loss.
Advantages of Cost sheet
The advantages of cost sheet are as follows:
a) It shows the total cost and cost per unit of the product during a period.
b) It helps management in fixing up the selling price of the product.
c) It helps comparison of the various elements of cost with past results and standard cost.
d) It helps to control the cost of production.