> > [!TLDR] > A cost sheet is a periodic statement presenting the build-up of total cost and cost per unit element by element. > > A **cost sheet** (statement of cost) is a document that analyses the total cost of a product or job into its elements and stages: > > | Stage | Build-up | > | --- | --- | > | Prime cost | Direct material + Direct labour + Direct expenses | > | Works (factory) cost | Prime cost + Factory overhead (± WIP) | > | Cost of production | Works cost + Office & administration overhead | > | Total cost / Cost of sales | Cost of production + Selling & distribution overhead | > …

What is cost sheet?

Question 21 of 85

Q. What is cost sheet?

ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2019Subjective· 2mImportance★★★★★est

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A cost sheet is a periodic statement presenting the build-up of total cost and cost per unit element by element.

A cost sheet (statement of cost) is a document that analyses the total cost of a product or job into its elements and stages:

Stage	Build-up
Prime cost	Direct material + Direct labour + Direct expenses
Works (factory) cost	Prime cost + Factory overhead (± WIP)
Cost of production	Works cost + Office & administration overhead
Total cost / Cost of sales	Cost of production + Selling & distribution overhead
…

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2024Set ANNUAL1 mark
$Q. Rectify the underlined portions of the following sentences :$
(vii) Prime cost plus factory overhead is total cost. (underlined : total)
›Reveal solutionSolution
Correct word: Prime cost + factory overhead = WORKS cost (not total cost).

The cost sheet build-up is:

Prime cost + Factory/Works overhead = Works (Factory) cost

Works cost + Office & Administration overhead = Cost of production

Cost of production + Selling & Distribution overhead = Total cost (cost of sales) …
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CBSE 2022Set ANNUAL1 markMCQ
$Q. Cost of production is equal to :$
(a) Prime cost plus factory overheads
(b) Factory cost plus administration overheads
(c) Direct material plus direct expenses
(d) Total cost plus profit
›Reveal solutionSolution

Cost of production = Works (factory) cost + Office/Administration overheads — option (b).

The cost-sheet ladder in +2 Class-12 Cost Accounting (CHSE Odisha, NCERT/CBSE-aligned) is:

Stage Build-up
Prime cost Direct material + Direct wages + Direct expenses
Works / Factory cost Prime cost + Factory (works) overheads
Cost of production Works cost + Office/Administration overheads

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CBSE 2022Set ANNUAL1 markMCQ
$Q. Aggregate of direct material, direct wages and direct expenses is known as :$
(a) Factory cost
(b) Cost of production
(c) Total cost
(d) Prime cost
›Reveal solutionSolution

Direct material + Direct wages + Direct expenses = Prime cost — option (d).

In +2 Class-12 Cost Accounting (CHSE Odisha), prime cost is the aggregate of all direct costs:

Element
Direct material xxx
Direct wages xxx
Direct expenses xxx

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CBSE 2022Set ANNUAL1 markMCQ
$Q. Cost of sale is the sum total of :$
(a) Cost of production plus selling and distribution overheads
(b) Prime cost plus factory overheads
(c) Cost of production plus selling and distribution overheads plus % of profit
(d) Total cost minus profit
›Reveal solutionSolution

Cost of sales = Cost of production + Selling & Distribution overheads — option (a).

In the cost-sheet build-up (CHSE Odisha +2 Cost Accounting):

Stage Build-up
Cost of production Works cost + Office/Administration overheads
Cost of sales (total cost) Cost of production + Selling & Distribution overheads
Sales Cost of sales + Profit
…

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CBSE 2019Set ANNUAL1 mark
$Q. Correct the underlined portion of the following sentence: Cost of production + selling and distribution overhead = Factory cost. (underlined portion: "Factory cost")$
›Reveal solutionSolution

The underlined "Factory cost" is wrong — adding selling and distribution overhead to cost of production gives Total Cost (Cost of Sales), the last line of the cost sheet.

The cost sheet builds up in a fixed sequence (a core idea in the CHSE Odisha +2 Class-12 Cost Accounting syllabus):

Stage Build-up
Prime cost Direct material + Direct labour + Direct expenses
Factory / Works cost Prime cost + Factory (works) overhead
Cost of production Factory cost + Office & administration overhead

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Stage	Build-up
Prime cost	Direct material + Direct wages + Direct expenses
Works / Factory cost	Prime cost + Factory (works) overheads
Cost of production	Works cost + Office/Administration overheads

Element
Direct material	xxx
Direct wages	xxx
Direct expenses	xxx

Stage	Build-up
Cost of production	Works cost + Office/Administration overheads
Cost of sales (total cost)	Cost of production + Selling & Distribution overheads
Sales	Cost of sales + Profit
…

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Q.What is cost sheet?

Concept understanding — Cost Sheet

Stage	Build-up
Prime cost	Direct material + Direct labour + Direct expenses
Factory / Works cost	Prime cost + Factory (works) overhead
Cost of production	Factory cost + Office & administration overhead

Q.What is cost sheet?

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