Cost sheet

In this case, we have to take help from the theory part in the ICAI Study Material. The best way is to memorize the list of items given under Direct Expenses and Factory Overheads. If you are thorough with these 2 lists, you will never face any problem in classification. Kindly take out some 15-20 mins to study these list of items. It will be really helpful. I have attached the images of these 2 lists. You can find them in your study material also.

Varshaa M

CA Final

★ 33K+

20-Mar-23 20:46

Where does the canteen cost come?

Thread Starter

Gokul Nath

CA Inter

★ 605

20-Mar-23 21:25

Canteen cost comes under direct. Direct cost is any cost which can be attributed to a cost object but indirect cost cannot be directly attributable to particular cost object. In simple words if u can trace and identify any cost to a specific cost unit /object it is direct & if u cannot trace or identify it is indirect.

ASMA HANIYA

CA Inter

★ 12K+

20-Mar-23 21:38

Can u explain how the canteen cost is linked with cost object?

Thread Starter

Gokul Nath

CA Inter

★ 605

20-Mar-23 22:10

Canteen cost is linked with the number of employees

ASMA HANIYA

CA Inter

★ 12K+

21-Mar-23 10:17

In simple words if there are two departments and we can indentify the expense related to each department like hours worked on each department by the workers it would be direct labour, but there would also be some indirect labour which we cannot identified

ASMA HANIYA

CA Inter

★ 12K+

21-Mar-23 10:28

That indirect expense is overhead for which we can use the formula given in SM

ASMA HANIYA

CA Inter

★ 12K+

21-Mar-23 10:33