Cost Accounting

7

Single Costing^*

LEARNING OBJECTIVES

After studying this chapter you should be able to:

1. Understand the meaning and features of output costing.

2. Distinguish between the historical cost sheet and the estimated cost sheet.

3. Understand the significance of cost sheet.

4. Prepare a cost sheet and a production account.

5. Comprehend the special treatment of stock.

6. Differentiate between a cost sheet and a production account.

7. Explain the meaning of certain key terms.

7.1 UNIT COSTING

Unit costing is a method of costing. This method is used:

1. In industries producing identical products or a single article on a large scale
2. Where manufacturing process (i.e. production) is uniform
3. Where cost units are having identical costs

Ascertainment of cost per unit ...