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CA Chap 4 PDF
CA Chap 4 PDF
CA Chap 4 PDF
&
COST SHEET
Dr. Mohamed Kutty Kakkakunnan
Associate Professor
P G Dept. of Commerce
NAM College Kallikkandy- Kannur
Kerala – India
kuttynam@gmail.com
ELEMENTS OF COST
Introduction
• Production of goods and services require
different factors such as raw material, human
resource, power, machinery and a lot of other
elements.
• A firm engaged in production activities have to
pay for these entirely different expenses, which
constitute the cost of production
• Total cost is composed of payments made for
different goods and services necessary for
production of the commodity
• These different parts of cost of production is
known as the elements of cost
Direct
Production
Material / works
Indirect
Depreciation-Office 1250
Advertising 1250
Warehouse Charges 500 3875 3.875
COST OF SALES 163250 163.25