Hindustan Petroleum Cost Sheet

I want to know the Purposes of Cost Sheet in Hindustan Petroleum Corporation Limited HPCL, India so can you tell me?

‘COST’ represents a sacrifice of values, a foregoing or a release of something of value. It is the price of economic resources used as a result of producing or doing the thing costed.

Cost Sheet

For determination of total cost of production a statement showing the various elements of cost is prepared.

Cost sheet is a statement, which provides for the assembly of the detailed cost of the total cost of job operation or order.

It brings out the composition of total cost in a logical order, under proper classifications and sub-divisions.

The period covered by the cost sheet may be a week, a month or so.

Separate columns are provided to show the total cost and cost per unit. In case of multiple products a separate cost sheet may be prepared for each product. Alternatively, separate columns of total cost and unit cost may be provided for each product in the same cost sheet. A cost sheet is prepared under output or unit costing method.

Purposes of cost sheet

Cost sheet serves the following purposes:

It gives the break up of total cost under different elements.

It shows total cost as well as cost per unit

It helps comparison with previous years.

It facilitates preparation of tenders or quotations

It enables the management to fix up selling price

It controls cost.

Divisions Of Cost-

Prime Cost:It comprises of all direct materials, direct labour and direct expenses. It is also known as flat cost.
Prime Cost = Direct Materials + Direct Labour + Direct Expenses.

Works Cost:It is also known as factory cost or cost of manufacture. It is the cost of manufacturing an article. It includes prime cast and factory expenses.
Works Cost = Prime Cost + Factory Overheads

Cost of Production:It represents factory cost plus administrative expenses
Cost of Production = Factory Cost + Administrative expenses

Total Cost:It represents cost of production plus selling & distribution expenses
Total Cost = Cost of production + Selling & distribution - expenses

Selling Price: It is the price, which includes total cost plus margin of profit or minus loss, if any.
Selling Price = Total Cost + Profit (-Loss)

Contact-

Registered Office & Corporate Headquarters

Hindustan Petroleum Corporation Limited.
Petroleum House,
17, Jamshedji Tata Road,
Mumbai 400020.
Maharastra, India.
Email: corphqo (at) hpcl [dot] in

Marketing Headquarters

Hindustan Petroleum Corporation Limited.
Hindustan Bhawan,
8, Shoorji Vallabhdas Marg,
Ballard Estate,
Mumbai 400001.
Maharastra, India.
Email: mktghqo (at) hpcl [dot] in

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Answered By StudyChaCha Member