Cost Sheet It is a statement designed to show the output of a particular accounting period along with break up of costs.

It discloses the total cost and the cost per unit of items produced during the given period. Cost sheet may be prepared for a week, monthly, quarterly or yearly indicating various components of cost as prime cost, works cost, cost of production, cost of goods sold, total cost and also profitability on a production. The major features of a cost sheet are as follows: 1. Cost sheet reveals total costs and the cost per unit of units produced. 2. Cost sheet reveals total costs under different classifications. 3. Cost sheet helps in the preparation of tender and quotation. 4. Cost sheet helps in fixing the selling price. The advantages of cost sheet are as follows: 1. It discloses the total cost and the cost per unit of the units produced during a given period. 2. It enables a manufacturer to keep a close watch on and control over the cost of production. 3. It helps in eliminating costs that go towards increasing the cost of a product. 4. It acts as a guide to the manufacturer and helps in formulating a definite, useful production policy.