Explain what is a Cost Statement?

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A cost statement or cost sheet or cost card shows the detailed cost of a cost centre or cost unit.Append below is a simple format of a cost statement:

Cost Statement or Cost sheet or Cost Card

 $
Direct material cost

           5,000
Direct labor cost

           4,000
Direct expenses

           1,000
PRIME COST

         10,000
Production overhead

           2,500
PRODUCTION COST

         12,500
Administration overhead

           4,300
Selling and distribution overhead

           6,500
TOTAL COST

         23,300
Profit

           3,400
Selling Price

         26,700

 

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